Prior to beginning work on this discussion forum, read Chapter 5: Merchandising Operations and the Multiple-Step Income Statement and Chapter 6: Reporting and Analyzing Inventory in your course text.

Prior to beginning work on this discussion forum, read Chapter 5: Merchandising Operations and the Multiple-Step Income Statement and Chapter 6: Reporting and Analyzing Inventory in your course text.

In your initial post, present a detailed explanation of the recording of purchases under a perpetual inventory system. Use hypothetical figures to illustrate the perpetual inventory system. After presenting your hypothetical figures, discuss how a perpetual inventory system is different from a periodic inventory system. Your answer should illustrate understanding of the perpetual inventory system.

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