The periodic inventory system uses a periodic physical count to gauge inventory levels and selling prices. The perpetual system continuously monitors inventory levels, updating them anytime a product is received or sold.
A perpetual inventory system is a kind of inventory control that continuously logs in real-time the quantity of inventory bought or sold using business software or other technological tools, like a point of sale.
In a permanent system of inventory, revisions to the cost of products sold or received journal entry would involve promptly debiting accounts receivable and crediting sales. The perpetual system of inventory has one advantage over the periodic system of inventory: it guarantees the accuracy of the inventory account balance at all times, assuming no spoilage, theft, etc. The cost of items sold also affects the periodic system of inventory.
Consequently, both periodic and permanent
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