Part 2) Application /20 1) Below is a partial listing of accounts in the general ledger of Carey Co. Carey uses a periodic inventory system. Place an X in the appropriate column to designate whether the account should be closed at year end and, if so, whether the appropriate closing entry would require a debit or credit to the account. Account 1. Purchase Returns and Allowances 2. Freight In 3. Sales 4. Merchandise inventory (Ending) 5 Sales Returns and Allowances 6. H. Carey, Drawings. 7. Freight Out H. Carey, Capital 9 Merchandise Inventory (Beginning). 10 Cash Not Closed Closed Debil Credit [10] 2) Match the terms given below with the definitions or descriptions that follow by placing the appropriate letter in the space provided. A. Analysis B. Control account C. Cost effectiveness D. Design E. Follow-up F. Flexibility G. Implementation H. Special journal L Subsidiary ledger J. Usefulness 1. An account in the general ledger that controls a subsidiary ledger. 2. After the system is up and running, it must be evaluated and monitored for weaknesses and breakdowns; effectiveness and efficiency must be compared to design and organizational objectives. 3. Used to group similar types of transactions. 4. Information must be understandable, relevant, reliable, Simely, and accurate [10] 5. A group of accounts with a common characteristic linked to the general ledger by a control account. 6. Job descriptions are prepared; controls integrated; reports formatted; and equipment selected 7. Determining internal and external information needs, identifying sources of information and the need for controls, and studying alteratives. 8. The systems should be able to accommodate a variety of users and changing information needs. L 9. The benefits obtained from the information disseminated must outweigh the cost of providing 10. New or revised systems require that documents, procedures, reports, and processing equipment must be installed and made operational