Inventory Systems ◆ Perpetual method Gives a continual record of the amount of inventory on hand. When an item is sold it is recorded in the Cost of Goods Sold account ◆ Periodic method Requires updating the inventory account only at the end of the period, Acquisition of merchandise inventory is recorded in a temporary purchases account Task Team of FUNDAMEnTAL ACCOUNTING Business School. Sun Yat sen University 99