| $45,636 2. What is the major difference between a periodic and perpetual inventory system? | a. Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. | | | | b. Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month. | | | | c. Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account. | | | | d. All of these choices are correct. 3. What is the major difference between a periodic and perpetual inventory system? | a. Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. | | | | b. Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month. | | | | c. Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account. | | | | d. All of these choices are correct. 4. Allowance for Doubtful Accounts has a debit balance of $341 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 3% of net sales. If net sales are $564,699, the amount of the adjusting entry to record the estimate of the uncollectible accounts is | | | | $16,941 5. A fixed asset with a cost of $23,329 and accumulated depreciation of $20,996 is traded for a similar asset priced at $59,222. Assuming a trade-in allowance of $5,960, the cost basis of the new asset in a transaction with commercial substance is Select the correct answer. | | | | | | |