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If we purchase $500 worth of merchandising inventory for $500 cash, what is the journal entry?
Dr. Merchandise Inventory $500
Cr. Cash $500
With this system, accounting records are updated for each purchase and each sale of inventory
What is the perpetual system?
The customer will get a 5 percent discount if they pay within 15 days.
With this system, we update accounting records for purchases and sales of inventory only at the end of a period.
What is the periodic system?