Part B: Valuation of Inventories: A Cost-Basis Approach (10 marks) Question 3: (4 marks) The Eagle Company employs a perpetual inventory system and the BKD Corporation uses a periodic system. Describe the differences between the two systems in accounting for the following events: (1) purchase of merchandise, (2) sale of merchandise, (3) return of merchandise to supplier, and (4) payment of freight charge on merchandise purchased. Indicate which inventory-related accounts would be debited or credited for each event. (1+1+1+1=4 marks) Solution