A sale of inventory is recorded in Sales revenue Account opened. However, the cost of goods sold is not continuously updated with each transaction of sales in case of Periodic inventory system is followed. Journal entry to be passed while recording the sale of inventory goods in case of Periodic Inventory System.

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Chapter 5, Problem 26ARQ

To determine

A sale of inventory is recorded in Sales revenue Account opened. However, the cost of goods sold is not continuously updated with each transaction of sales in case of Periodic inventory system is followed.

Journal entry to be passed while recording the sale of inventory goods in case of Periodic Inventory System.

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