Detailed records of goods held for resale are not maintained under a:

• A. Just-in-time inventory system
• B. Specific identification method
• C. Perpetual inventory system
• D. Periodic inventory system

Answer: (D)

Verified step by step guidance

1. Understand the concept of inventory systems: Inventory systems are methods used by businesses to track and manage their stock of goods. The two main types are perpetual and periodic inventory systems.
2. Learn about the periodic inventory system: In a periodic inventory system, detailed records of goods held for resale are not maintained continuously. Instead, inventory is updated at specific intervals, typically at the end of an accounting period.
3. Compare with other inventory systems: Perpetual inventory systems continuously update inventory records for every purchase and sale. Specific identification methods track individual items, and just-in-time systems aim to minimize inventory levels by receiving goods only as needed.
4. Recognize the key difference: The periodic inventory system does not require detailed, ongoing records of inventory. Instead, it relies on physical counts and calculations at the end of the period to determine the cost of goods sold and ending inventory.
5. Conclude why the periodic inventory system is the correct answer: Since detailed records are not maintained under this system, it aligns with the description provided in the problem.