1. For each statement below, identify whether the statement applies to the periodic inven-tory system, the perpetual inventory system, or both.

a. Normally used for relatively inexpensive goods.

b. Keeps a running computerized record of merchandise inventory.

c. Achieves better control over merchandise inventory.

d. Requires a physical count of inventory to determine the quantities on hand

10. Southwest Furnitures unadjusted Merchandise Inventory account at year-end is

$63,000. The physical count of inventory came up with a total of $61,900. Journalize

the adjusting entry needed to account for inventory shrinkage.