1. At the end of 2020, Carter Corp. performs a physical inventory count showing the cost of its ending inventory is $9,000 lower than its "Inventory" account balance. Which of the following shows the correct response for what Carter should do because of this difference? A. It should credit its "Sales Revenue" account by $9,000. B. It should credit its "Cost of Goods Sold" account by $9,000. C. It should credit its Inventory" account by $9,000. D. It should debit its Sales Revenue" account by $9,000. E. It should not make a journal entry of any sort. 2. Gross profit is determined using the following formula: A. Purchases - Purchase Discounts + Freight-In Purchase Returns and Allowances B. Net Sales - Cost of Goods Sold - Operating Expenses C. Net Sales - Cost of Goods Sold - Operating Expenses Income Tax Expense D. Beginning Inventory + Net Purchases - Ending Inventory E. Net Sales - Cost of Goods Sold 3. Which inventory valuation method applies to the FIFO and LIFO cost flow assumptions, respectively? FIFO LIFO A. Lower of Cost or Net Realizable Value Method Lower of Cost or Net Realizable Value Method B. Lower of Cost or Market Method Lower of Cost or Market Method C. Lower of Cost or Market Method Lower of Cost or Net Realizable Value Method D. Lower of Cost or Net Realizable Value Method Lower of Cost or Market Method