Alpha Company used the periodic inventory system for the purchase & sales of merchandise....

Question:

Record Inventory Transactions Following Periodic Inventory Method

Company's have one of two choices of how to record inventory transactions in the books and records and in the general ledger. Most smaller Companies which cannot afford to invest in technology-related tools record inventory transactions using the periodic inventory method, whereby all purchases are recorded to a purchases account, and the physical inventory at the end of a period is counted and valued to then finalize the process of recording cost of goods sold expense (beginning inventory + purchases - ending inventory = cost of goods sold expense).

Answer and Explanation: 1