Examlex
Which of the following statements is NOT true?
Periodic Inventory System
A method that relies on occasional physical counts of inventory to determine the ending inventory balance and the cost of goods sold.
Purchase Return
Occurs when a buyer returns merchandise to the seller for a refund or credit due to various reasons such as defects or dissatisfaction.
Merchandise Defective
Goods received or in inventory that do not meet the seller's or buyer's specifications and may need to be returned or discarded.
Net Method
An accounting method where discounts for early payment are anticipated and recorded as reductions of the cost of purchases or an expense.
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