Analytics in Action Assignment Background: You are an accountant at a large hospital, reporting to the controller. The hospital maintains a perpetual inventory system. Hospital policy requires that a physical count of inventory be performed at year-end. and that the Inventory account balance must be adjusted to match the physical count results. Following the results of the year end physical inventory count, the controller has provided an Excel file containing the physical inventory count results and asked you to use the data contained in this file to prepare three manual journal entries adjusting the Inventory account balance: 1) Remove consignments tracked in the perpetual system from the Inventory balance. 2) Use the Inventory Over/Short account to adjust the Inventory balance to match the count results. 3) Use the Loss Due to Decline in Value account to adjust the Inventory balance for known spoilage. At last tally, the hospital's supply room held 2,146 unique items. Upon ordering new inventory, a supply room staff member increases the quantity in the perpetual inventory system and computes a new average cost per unit consistent with the weighted average cost flow assumption. Upon distribution of inventory (to the operating room, etc.), a staff member decreases the quantity in the perpetual inventory system. The perpetual inventory system is configured to automatically calculate and post journal entries to the hospital's general ledger based on the following logic: IF: A staff member orders new inventory and updates the quantity/cost in the perpetual system THEN: The perpetual system automatically calculates and posts this entry: DR: CR: Inventory Accounts Payable XXXXX XXXXXX IF: A staff member distributes inventory and updates the quantity in the perpetual system THEN: The perpetual system automatically calculates and posts this entry DR: Cost of Goods Sold CR Inventory XXXXX XXXXX As a result of these automatic entries, the hospital's Inventory account balance in the general ledger is kept in line with the perpetual inventory system balance during the year. On December 31, 2018, the Inventory account had a balance of $678,798.28, which matches the perpetual system. In preparation for the physical count, the supply room supervisor locked staff members out of the perpetual system so that they could no longer update the system after 5:00 pm of December 31, 2018. Staff members conducted the physical count on the evening of December 31, beginning at 5:00 pm and finishing at 8:00 pm. Following completion of the count, the supply room supervisor input the new inventory quantities resulting from the physical count into the perpetual inventory system. He also made the following notes, but he did not adjust any of the inventory quantities for the situations described.