z

Recording Inventory
Transactions
z
Some of the accounts in recording
inventory transactions

Inventory Merchandise Inventory

Accounts Payable Work-in-process

Inventory
Cost of Goods Sold
Finished Goods Inventory
Raw Materials Inventory
 z
Inventory Bookkeeping
If company A buys $100 in raw materials to manufacture
their product.
z
Cost of Goods Sold Journal and Cash Journal
 z
Inventory System Comparison
Purchase of Inventory

Purchase Return or Allowance

Purchase Discount

Sale of Merchandise
Sales Return

A sales allowance and sales discount

The table below summarizes the differences between the perpetual and periodic inventory
systems.