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Prompt
This week, consider the perpetual inventory system for a merchandising business of your choice. As seen in the partial Income Statement above, great detail can be provided through the use of multiple inventory-related accounts. Would it be beneficial to record inventory-related transactions to specific accounts such as freight-in or purchase returns and allowances or sales returns and allowances? Why or why not?
For your citation, you might use articles that show examples of inventory management systems companies are using – including apps and mobile device technology. You can also find articles from experts that suggest what types of industries benefit from a perpetual versus periodic inventory system.
Your initial and reply posts should work to develop a group understanding of this topic. Challenge each other. Build on each other. Always be respectful but discuss this and figure it out together.
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