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ACC 290 Week 4 Summary
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During Week Four I learned much more about what happens to inventory than I expected to learn. I thought inventory was pretty much cut and dry and that you just put the basics into the equation, “Goods available = beginning inventory + purchases”. Because my organization uses the perpetual inventory system I didn’t realize that there was another inventory system called the periodic system. I learned the perpetual system of inventory keeps a running tally of inventory that is live and this is done by automatically making changes to the inventory as each item is sold, freight cost, returned, or discounted items. I learned the periodic system keeps track of the inventory but does not take into consideration costs for freight; items sold, returned, or discounted items. The periodic system updates its inventory by taking a count at the end of the period and subtracting the ending inventory from the available goods. Here are two examples of how each system handles the return of merchandise sold in their journal

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