Retail
COGS Recognition — Periodic Inventory System
Calculating and recording cost of goods sold at the end of a period using the periodic method.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Goods Sold | Expense (+) | 45,000.00 | - |
| Merchandise Inventory (Closing Balance) | Asset (-) | - | 45,000.00 |
💡 Accountant's Note
Under the periodic system, COGS = Opening Inventory + Purchases - Closing Inventory. The closing inventory figure comes from the physical count. COGS is calculated and recorded as one entry at period-end.
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