Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: The computer program returned the following ending inventory values: FIFO perpetual, $96 LIFO perpetual, ( $ 80 ) Moving average, ( $ 88 ) Which of the three values appears to be incorrect, and what "error" might be causing this condition?

B. J. Stewart Fumiture Company had the following transactions relating to the purchase and sale of leather sofas. There was no beginning inventory. Purchased 100 units on account at $1,000 per unit Sold 75 units for cash at $2,000 per unit Customers returned 3 defective units for cash refunds Stewart returned the 3 defective units to its supplier for credit on account (a) Assuming Stewart uses a periodic inventory system, what journal entries would be needed to record the preceding activity? (b) Assuming Stewart uses a periodic inventory system, show the calculation of gross profit. You may assume that Stewart conducted a physical count of ending inventory and confirmed that 25 were still on hand. (c) Assuming Stewart uses a perpetual inventory system, what journal entries would be needed to record the preceding activity? (d) Assuming Stewart uses a perpetual inventory system, show the calculation of gross profit. If Stewart uses a perpetual system, would there be any need to perform a periodic physical count of leather sofas on hand