Chapter 5, Problem 5.16BE

To determine

Periodic Inventory System: It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period

Worksheet: Worksheet is a multiple-column form, which is used in the adjustment process and for preparing the financial statements of the Company. It is not a permanent accounting record.

To indicate: Columns of worksheet (periodic inventory system) showing (a) Cash, (b) Beginning inventory, (c) Accounts payable and (d) Ending inventory.