1. In the periodic inventory system the account balance for Merchandise Inventory is not updated until
the end of the accounting period when a physical inventory count is completed. Using the information
provided complete the two journal entries needed to adjust the Inventory account for the periodic system.
Based on E14-1A, page 547 for Henry's Sporting Goods
The beginning balance in Merchandise Inventory on January 1 was $45,000.
The ending balance Merchandise Inventory counted on December 31 is $57,000.
	DATE	ACCOUNTS & DESCRIPTIONS				POST REF	dr	cr
	Dec. 31
		To close the beginning balance of Merchandise Inventory
	DATE	ACCOUNTS & DESCRIPTIONS				POST REF	dr	cr
	Dec. 31
		To record the ending balance of Merchandise Inventory