perpetual Inventory System and Periodic Inventory System the ABF management is considering switching to the perpetual inventory system. There is some confusion on the differences between the periodic and perpetual inventory systems. In order to assist the management in their understanding, journalize the following transactions 1) using the periodic inventory system, 2) using the perpetual system, and then 3) list the advantages and disadvantages of each system. ABF always uses the "net" method to record purchases of inventory because ABF management wants to know when discounts are lost. Example Transactions to Illustrate the 1) Periodic and 2) Perpetual Inventory Methods: 1) Purchased $43,000, on account, terms 3/10,n/60, of the chemical gurgalhexaphine XR33. 2) Sold $7,500 of blinker fluid on account to Joe's Automotive Shops of California. According to the inventory records, the sold blinker fluid had a cost to ABF of $2,000. 3) Paid $4,850 towards an account payable balance. The original invoice was for $5,000. The discount amount for early payment was $150. (hint: ABF always uses the net method in regard to purchases and accounts payable related to inventory) 4) Compare the periodic and perpetual inventory systems - Advantages and Disadvantages