ACCT 1-Unit 4 DQ: Accounting for Merchandising Operations
Sales revenue is generated by the sale of inventory. Companies can choose between the perpetual and the periodic system to account for the inventory. Please discuss the difference between the two accounting processes and explain how one would be the best choice for a company that makes Televisions. Discuss the reason why one accounting method might be preferred over the other or could both be used properly for a company that makes televisions. What factors were used to determine the best choice supporting your selection. In your discussion, provide another product that would best be accounted for using the system you did not select and explain what features of the product or merchandise, in your opinion, are the drivers for the opposite method.

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