Question: 1. Describe the difference between a perpetual inventory system and a periodic inventory system. 2. Underwater Adventures has the following account balances on August 31,

1. Describe the difference between a perpetual inventory system and a

1. Describe the difference between a perpetual inventory system and a periodic inventory system. 2. Underwater Adventures has the following account balances on August 31, 2023: The following information as at August 31, 20123 was also available: a. A physical count of items showed $1,200 of supplies on hand. b. An inventory count showed inventory on hand of $66,400. c. The equipment has an estimated useful life of eight years and is expected to have no salvage value. d. Uneamed sales revenue of $1,000 was eamed. Required: 1. Prepare the necessary adjusting journal entries at August 31, 2023. For simplicity all operating expenses are combined into a single operating expense account for financial statement purposes. Use the normal account name for the adjusting journal entries. 2. Prepare a classified balance sheet based on adjusted account balances. 3. Assuming Average Inventories of $50,000, calculate the Inventory Turnover Ratio. 4. Calculate the Gross Margin Percentage

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