Assuming the Periodic Inventory Method is used, which of the following accounts would be transferred to the Trading account? Select one: a. Depreciation b. Interest Received c. Customs Duty d. Cost of Goods Sold

Under the perpetual inventory system, how does the seller record sales made on account?

What does an increase in inventory imply? How would this increase in inventory be reported under the indirect method?

On which financial statement would the merchandise inventory account appear? A. balance sheet B. income statement C. both balance sheet and income statement D. neither balance sheet nor income statement

Rules of debit and credit for periodic inventory accounts Complete the following table by indicating for A through G whether the proper answer is debit or credit:

Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold

Explain the dollar-value LIFO method of inventory valuation.

Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods sold

Under the periodic inventory system, the ending inventory is entered by debiting Merchandise Inventory and crediting Income Summary.

Using a perpetual inventory system, the sale of inventory on account would be recorded as a. Debit Cost of Goods Sold; credit Inventory. b. Debit Inventory; credit Sales Revenue. c. Debit Accounts Receivable; credit Sales Revenue. d. Both a. and c. are correct.