Question: Develop a brief answer toe ach of the following questions: 1. Assume a large shipment of uninsured merchandise to your company is destroyed when the

Develop a brief answer toe ach of the following questions:

1. Assume a large shipment of uninsured merchandise to your company is destroyed when the delivery truck has an accident and burns. Would you want the terms to be FOB shipping point or FOB destination?

2. Under the perpetual inventory system, the Merchandise Inventory account is constantly updated. What would cause it to have the wrong balance?

3. Why is a physical inventory needed under both the periodic and perpetual inventory systems?

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