Answered

When recording merchandise transactions under the periodic inventory system, which of the following statements is not true?

A. Purchases of inventory are recorded in the inventory account.
B. Sales of merchandise are not recorded in the inventory account.
C. At the end of the period, a physical count of inventory on hand is taken.
D. There is no detailed record of the amount of inventory on hand at any given time.



Answer :

GinnyAnswer

Final answer:

In the periodic inventory system, maintaining detailed inventory records is essential for accurate financial reporting and inventory management.


Explanation:

Option d: There is no detailed record of the amount of inventory on hand at any given time, is not true when recording merchandise transactions under the periodic inventory system. In this system, maintaining a detailed record of inventory levels is crucial for accurate financial reporting and inventory management. Without such detailed records, businesses may face challenges in tracking the movement and value of their inventory.


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