Perpetual Inventory vs Periodic Inventory | Accounting How To | How to Pass Accounting Class

Perpetual Inventory vs Periodic Inventory | Accounting How To is an accounting tutorial explaining the different accounting treatments for two inventory methods: perpetual inventory and periodic inventory. It shows the journal entries needed for perpetual inventory and periodic inventory and how the two inventory methods differ in their application in the classroom and in the real world. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of two playlist series: How to Pass Accounting Class and Merchandise Businesses and Inventory Cost Methods. ⏰ Accounting How To Time Stamps: 00:00 Bad Accounting Humor 00:18 Introduction to Perpetual and Periodic Inventory 03:05 Perpetual Inventory Journal Entries 04:48 Periodic Inventory Journal Entries 05:55 Purchases Account 07:16 Inventory Calculation Formula to Determine Cost of Goods/Merchandise Sold 08:06 Cost of Merchandise Sold Journal Entry under Periodic Inventory 08:57 Perpetual vs Periodic - which is better? 🏋 Download the spreadsheet here: https://docs.google.com/spreadsheets/d/13Zu6nCLZYZQS1YvzFLSy4TLBzWzk1ezz2_16mvXg_1A/edit?usp=sharing 🎥 Playlists: