Periodic Inventory System, Requires a physical count at year-end, Uses a Purchases account to record buying of goods, Cost of sales is calculated at the end of the period, Does not keep continuous record of inventory, Simple and inexpensive to maintain, Perpetual Inventory System, Updates inventory continuously after every transaction, Cost of sales is recorded automatically after each sale, Uses the Inventory account directly for purchases and sales, Provides real-time stock balance, More accurate but costly to operate.

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