Hello I am having a bit of trouble being I have missed a bit of class due to a kidney stone. OK I am doing all right but feel real dumb cause I am not feeling to comfortable with any of the answers that I choose. Using perpetual inventory if a shortage is discovered, then what would merchandise inventory be, debited or credited or I was thinking inventory would be credited. Could someone please help Thank you boowhokitty00

Using Perpetual Inventory method means that you should open Cost of Goods Sold ledger with a debit entry. Any shortage arising thereof is credited because it is a deduction from from the first entry. So your guess is right, credit shortage