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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1772 |
Essay's paper body
The periodic system allows firms to determine inventory and cost of goods sold at the end of the year without having to record the effect of every sale and purchase made throughout the year.
Whether a company uses a periodic or a perpetual inventory system, a physical count of goods on hand should occur from time to time...
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When physical counts are not possible or not cost effective one of two estimation methods must be employed. The first estimation method is the gross profit method. This method applies the company’s historical gross profit percentage to current period information about net sales and the costs of goods available for sale...
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