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Under the perpetual inventory system, Purchases accounts would not be used.
Permanent inventory is a continuous accounting method that accurately reflects actual stock in the book inventory by continuously recording inventory changes without the need for physical inventories. POS systems and scanners are input devices used in warehouses to record perpetual inventory.
Increasingly, warehouses and the retail sector adopt perpetual inventory methods. Understatements due to missing inventory and overstatements due to phantom inventory can both be minimized with perpetual inventory. Companies that employ a material requirement planning (MRP) system for production must also maintain perpetual inventory.
The inventory purchases made by a company are documented in the purchasing account, which is a general ledger account. In a periodic inventory system, this account is used to figure out how much inventory is available for purchase.
The inventory available for sale is determined by adding the initial inventory to the total amount of purchased inventory throughout the course of a period under the periodic method. The cost of goods sold for the period is calculated by deducting the amount of inventory that is available for sale from the ending inventory valuation, which is determined by a physical count at the conclusion of the period. As a result, the following calculation employs the purchases account's contents:
Cost of goods sold = (Beginning inventory + Purchases - Ending inventory).
To learn more about inventory purchases please click on the given link: https://brainly.com/question/14291467
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