Chapter 5, Problem 5.17E

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.

Cost of goods sold: Cost of goods sold section computes the net cost incurred by Company to sell the merchandise during the accounting period.

To prepare: Cost of goods sold section of the A Company.