0. For 20X0, Big-Co, which uses the periodic method and records purchases at net, has beginning inventory of $200,000. Big-Co's data for 20X1 includes the following: Purchases Freight-in Purchase discounts lost Purchase returns $150,000 8,000 7,000 15,000 If Big-Co's ending inventory is $110,000, what is the year-end adjusting journal entry? a. Ending Inventory Purchase Returns Cost of Goods Sold 110,000 15,000 232,000 Purchase Discounts Lost Purchases Beginning Inventory 7,000 150,000 200,000 110,000 15,000 240,000 b. Ending Inventory Purchase Returns Cost of Goods Sold 150,000 8,000 7,000 200,000 Freight-In Purchase Discounts Lost Beginning Inventory 110,000 15,000 7,000 226,000 c. Ending Inventory Purchase Returns Purchase Discounts Lost Cost of Goods Sold Purchases Freight-In Beginning Inventory 150,000 8,000 200,000 d. None of the above When a sale is recorded under the periodic method: a. only the income statement is affected. b. only the balance sheet is affected. c. both the balance sheet and the income statement are affected. d. none of the above. 11. Your company purchases $10,000 of inventory, 2/10, n/30, debits Purchases for $10,000 and credits Accounts Payable for $10,000. If your company pays for the merchandise before the discount period lapses, you will: a. debit Purchase Discounts Lost for $200. b. credit Purchase Discounts for $200. c. debit Accounts Payable for $9,800. d. credit Purchases for $9,800. 12. 13. Your company purchases $10,000 of inventory 2/10, n/30, debits Inventory for $10,000 and credits Accounts Payable for $10,000. If your company pays for the merchandise before the discount period lapses, you will: a. debit Accounts Payable for $9,800 b. debit Cash for $9,800 c. credit Inventory for $200