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In this video youll find out what perpetual and periodic inventory systems are. Ill explain the differences and show you how they both work in a few simple steps. [Music] Hello there welcome back to Accounting Stuff. Im James and in this weeks video were going to continue our inventory mini-series. Last time I showed you how to account for one unit of inventory in a merchandising business and today Id like to expand on that idea. I want to show you how to account for many units of inventory at the same time. We do that using the perpetual and periodic inventory systems. But first some definitions In a merchandising business inventory is the goods held by business that intends to sell to earn revenue. A perpetual system continuously updates a businesss inventory account as goods are bought and sold on a unit by unit basis. Whereas a periodic system updates a businesss inventory account at regular intervals. This is usually triggered by a physical inventory count that happens a
