0. Which of the following statements is TRUE: A. Under the periodic inventory system, purchases of inventory would be debited to the Merchandise Inventory account. B. Using the periodic inventory system, the balance of merchandise inventory can be known from the account; thus, no physical count is required at the end of the period. C. Under the perpetual inventory system, purchases of inventory would be debited to the Merchandise Inventory account. D. Using the perpetual inventory system, a busiress would be able to record higher profit. Which of the following statements is TRUE about inventory systems? A. Under the perpetual inventory system, the cost of goods sold can only be determined at the end of the accounting period. B. Under the periodic inventory system, a physical count of inventory needs to be done to determine the amount of inventory. C. Under the perpetual inventory system, the inventory account is not updated continuously. D. Under the periodic inventory system, the inventory account is updated continuously. 12. Choose the correct statement: A. Under the perpetual inventory system, discounts received would be debited to the Purchase Discount account. B, Under the perpetual inventory system, discounts received would be debited to the Merchandise Inventory account. C. Under the periodic inventory system, discounts received would be credited to the Purchase Discount account. D. Under the periodic inventory system, discounts received would be credited to the Merchandise Inventory account. 13. Under the perpetual inventory system, purchase of merchandise is: A. Debited to the Purchase account B. Debited to the Merchandise Inventory account C. Credited to the Merchandise Inventory account D. Debited to the Cost of Merchandise Sold account 14. A business returns merchandise purchased on credit to its supplier due to defect. What would be the journal entry to record the transaction? A. Debit Sales, Credit Cash B. Debit Cash, Credit Sales C. Debit Sales Return and Allowances, Credit Accounts Receivable D. Debit Accounts Receivable, Credit Sales Returns and Allowances 15. Jati Fumiture purchased merchandise from Helve Sdn Bhd. The transportation term was FOB shipping point. If Jati Fumiture uses the perpetual inventory system, which account would be debited to record the transportation cost? A. Merchandise Inventory B. Transportation In C. Transportation Out D. Cash 16. ABC Enterprise purchased merchandise on credit from Glam Sdn Bhd for RM5,000, ABC Enterprise then made a full settlement to Glam Sdn Bhd and received a 2% discount. Determine the journal entry for ABC Enterprise when it made the full settlement, assuming it uses the periodic inventory system. A business sells merchandise and agrees to pay for the transportation cost. Which of the following accounts should be debited? A. Transportation in B. Transportation Out C. Merchandise Inventory D. Sales The following information applies for Questions 18-20: Amrina Enterprise sells merchandise of RM2,000 to Baber Enterprise with credit terms 2/10,n/30, FOB destination. After inspection, Baber Enterprise retums RM150 of damaged merchandise. It then makes full settlement to Amrina Enterprise within the discount period. 3. What would be the journal entry made by Amrina Enterprise to record the receipt of payment from Baber Enterprise? A. Dr Cash Cr Accounts Receivable Merchandise Inventory B. Dr Cash Cr Sales Returns and Allowances Sales Discount C. Dr Sales Returns and Allowance Cr Accounts Receivable Sales Discount D. Dr Cash Sales Discount Cr Accounts Receivable 9. Determine the amount of payment received by Amrina Enterprise. A. RM1,960 C. RM11,813 B. RM1,850 D. RM1,665 20. Baber Enterprise uses the perpetual inventony system. When it made the payment to Amrina Enterprise, the amount of discount would be A. Debited to the Purchase Discount account B. Debited to the Merchandise Inventory account C. Credited to the Accounts Payable account D. Credited to the Merchandise Inventory account