1. In your opinion, why are perpetual inventory systems so much more popular today than back prior to the mid-1960s? Why would a company employing a perpetual inventory system still take a physical inventory periodically? ( 75-100 words)
2. What are the reasons a company would consider using a periodic inventory system? (75-100 words)
3. What is wrong with this journal entry? ( 75-100 words)
Consider the following accounting transaction: PW Audio Supply sells merchandise on account on May 4 to Sauk Stereo for $3,800. The cost of the merchandise to PW is $2,400.
Why is the following journal entry inappropriate for this transaction? What should the correct entry be?
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