Answer:
While management of a company may consider whether using periodic or perpetual inventory system—in the aim of getting inventory system that fits into their operation, accountants would need to be familiar with inventory journal entries in both periodic and perpetual system. The journal entries for the perpetual inventory system should seem familiar to all of you—as perpetual system has been assumed in all other posts in this site (except a discussion in the periodic system).
The only downside of using perpetual inventory system is the costs and investments (dollar and time) that are required to operate and maintain the system—to updating the inventory records each time a purchase and sale are made.
