At the end of the year, Karras Inc. had a debit balance of $$141,120$ in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of $$4,350$ and $$9,420$ at the beginning and end of the year, respectively. During the year, Karras made credit sales of $$1,530,000,$ collected receivables in the amount of $$1,445,700,$ and recorded bad debt expense of $$83,750.$Instructions

Howard, Inc., is a merchandising company that began operations on January $1.$

During January, the following inventory transactions occurred:

Required:

Assume that Howard uses a perpetual inventory system. Prepare the

journal entries to record the January inventory transactions.

Assume that Howard uses a periodic inventory system. Prepare the

journal entries to record the January inventory transactions. Be sure to

include any adjusting entries necessary.

Next Level Howard's CEO states that a perpetual inventory system

would result in a better inventory valuation. Evaluate this statement and

provide a discussion of the benefits of each type of inventory system.