Hello,

Can someone guide me if following journal entry for recording inventory and getting Cost of goods sold amount is correct? the inventory method is periodic one. Every month I will take opening and closing inventory from the client's software and adjust it with monthly purchase amount to get COGS amount and also to record inventory.

Inventory a/c (closing balance)...Dr.

Cost of goods sold (Bal. amount)...Dr.

     To Inventory a/c (Opening balance)  Cr.

     To Purchases a/c (monthly purhcases)  Cr.

Thank you.