Under a periodic inventory system: O the revenue but not the cost of goods sold is recorded the cost of goods sold but not the revenue are recorded the revenue and the cost of goods sold are recorded the cost of goods sold are recorded after each sale
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In a periodic inventory system, the cost of goods sold (COGS) is determined at the end of the accounting period, rather than after each sale like in a perpetual system. This involves conducting an inventory count to calculate how much inventory was sold. When using this system, it’s essential to remember that revenue from sales is recorded at the time of the sale; however, the COGS is only accounted for during the periodic inventory reconciliation, making it crucial to accurately track inventory levels throughout the period!