1. Company A recorded on the books a sale made in 2020 on FOB Shipping Point terms. At the end of the period, the merchandise that was in transit en route to the buyer was included in A's physical inventory count.

2. Company A acquired a merchandise on December 31, 2020, with terms free on board destination (FOB destination). The merchandise was received on January 5, 2021. The purchase was recorded in 2020 before the merchandise was received but the merchandise was excluded from ending inventory. The company uses the periodic inventory system.

3. Provision to reduce inventory to Net Realizable Value

4. Returns on Purchases

5. Loss in inventory due to decrease in value

Pair

a. Account of the Statement of Income and expenses with normal balance CR.

b. Inventory Counter account with normal balance DR

c. As Cost of Good Sold will be correct in 2020

d. As Cost of Good Sold will be overestimated in 2020

e. As Cost of Good Sold will be understated in 2020

f. Inventory counter account for purchases with normal balance CR

g. Contra account for purchases with normal balance CR.

h. Account of the Statement of Income and Expenses wit normal balances DR.

i. Contra account for purchases with normal balance DR.