1. T F Accountants often call FIFO the balance sheet approach because the amount it reports for ending inventory better approximates the current cost of inventory. 2. T F Under the perpetual inventory system, coGS is recorded at the time inventory is sold. 3. T F When the value of inventory falls below its cost, companies have the option of recording the inventory at cost or the lower market value. 4. T F Overstating ending inventory in the current year causes net income in the current year to be overstated. 5. TF For inventory that is shipped FOB shipping point, title transfers from the seller to the buyer once the inventory begins shipment. 6. Davis Hardware Company uses a perpetual inventory system. How should Davis record the sale of merchandise costing $500 for $800 on account? Make the journal entry(s) 7. The practice of using the lower-of-cost-or-market to evaluate inventory reflects which of the following accounting principles? 1. Neutrality 2. Matching principle 3. Conservatism 4. Materiality 8. Under the principle of lower-of-cost-or-net realizable value, when a company has 15 items with a market value of $50 each and a cost of $60 each, make the journal entry to adjust the value. 9. Anthony Corp reported the following amounts for the year: Net Sales $290,000$138,000$50,000 Average Inventory $50,000 Calculate the inventory turnover rate and average days in inventory for Anthony Corp. 10. In choosing an inventory costing method, give one conern that might be considered as part of the decision process