Under the periodic method

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Under the periodic method, inventory is just counted at the end of the year. Under the perpetual method, inventory is adjusted throughout the year as sales and purchases are made. Under the perpetual method, when might the inventory balance on the books not always be accurate? When not accurate, what would cause the discrepancy? What are physical counts, and what are the cost and time associated with them? Have you ever seen a sign at Wal-Mart that said the store would be closed for an inventory count? What kind of effect can that have on business?

Reference no: EM131206463

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