Woods company uses the perpetual inventory system. At year end the general ledger indicated that this company had a balance of $45,000 in the Inventory account. Actual inventory on hand per a physical count was $46,500. What action does the company now need to take? No action is needed; the difference between the ledger and actual is less than 5%. The company needs to debit Inventory and credit Cost of Goods Sold for $1500. The company should debit the Purchases account and credit Cost of Goods Sold. The company needs to debit Cost of Goods Sold and credit Inventory, $1500.