ACG 2021 Lecture 5: Perpetual Inventory System

Describe how the perpetual inventory system works. What are someadvantages of using the perpetual inventory system? Is it necessaryto take physical inventory when using the perpetualsystem?

Present a detailed explanation of the recording of purchasesunder a perpetual inventory system. Use hypothethical figures toillustrate the perpetual inventory system. After presenting yourhypothetical figures, discuss how a perpetual inventory system isdifferent from periodic inventory system. Your answer shouldillustrate understanding of the perpetual inventory system.