1. On December 22, a business buys merchandise inventory under the terms F.O.B. destination. The goods are shipped on December 31, arrive on January 4, and are paid for on January 14. a. The business records the purchase of inventory on December 22. b. The business records the purchase of inventory on December 31 C. The business records the purchase of inventory on January 4. d. The business records the purchase of inventory on January 14. Which inventory method during periods of inflation will always produce the lowest inventory cost? FIFO b. d. LIFO Neither FIFO nor LIFO 2. a. C. Both FIFO and LIFO 3. Which method of inventory assumes recent costs are not matched with recent sales, because the method assumes old costs are sold first? a. FIFO c. Both FIFO and LIFO b. LIFO d. Neither FIFO nor LIFO