Question 14 (4 points)

Sold merchandise for $320 plus HST of $41.60 on account to R. Rogers. The company originally paid $190 to buy this merchandise. Using a perpetual inventory system, which account(s) will you debit?

Question 15 (2 points)

In the periodic inventory system, what does the balance in the Merchandise Inventory account represent during the fiscal period? Why is this figure important (where is it used)?

Question 16

Explain in detail, three major differences between the periodic inventory system in comparison with the perpetual system.

Question 17 (2 points)

Describe how the Merchandise Inventory account is affected when you are closing your accounts at the end of the fiscal period (closing entries) using the Periodic Inventory method.