Local Hardware uses the periodic inventory method. At the end of the accounting period, the company takes a physical inventory and finds that $20, 671 of goods are on hand, Purchases during the period were $76, 216, and in inventory at the beginning of the period was $25, 632. Freight on merchandise coming into the business was $2, 799, and returns of merchandise to suppliers amounted to $1, 776. In the schedule below, record the journal entry to be made by Local at the end of the accounting period to close the old inventory and record the new one. Gnu Company uses the perpetual method of recording inventory. Its records show Inventory on hand $15, 889. A count of the inventory, however, find only $14, 278 of inventory on hand. Record the entry needed by Gnu to correct its records