1. Identify the accounts debited and credited in the standard purchase and sale entries under (a) the perpetual inventory system and (b) the periodic inventory system.

2. If beginning inventory is $60,000, purchases total $135,000, and ending inventory is $62,500, how much is cost of goods sold? 3. Suppose your business deals in made-to-order machinery. Which inventory system and method should you use to achieve good internal control over the inventory? If your business is a small store that sells inexpensive cell phone cases, which inventory system would you most likely use? Why?

1. Identify the accounts debited and credited in the standard purchase and sale entries under (a) the perpetual inventory system and (b) the periodic inventory system. 2. If beginning inventory is $60,000, purchases total $135,000, and ending inventory is $62,500, how much is cost of goods sold? 3. Suppose your business deals in made-to-order machinery. Which inventory system and method should you use to achieve good internal control over the inventory? If your business is a small store that sells inexpensive cell phone cases, which inventory system would you most likely use? Why