1. The account for returns and concessions on the merchandise sold

A. It is a vents counter account and its normal balance is debited.

B. It decreases the equity of shareholders and increases debts.

C. Decreases assets and increases debts.

D. Increases the assets and assets of shareholders.

2. In an inflationary economic environment (prices are rising) the inventory balance (final inventory) will probably be higher if the Method of:

A. First to enter, first to leave ("FIFO").

B. Specific identification.

C. Last to enter, first to leave ("LIFO").

D. Moving average

3. The company buys merchandise for $1,000 under terms 2/10, N/30 and pays $50 for transportation. If the purchase is paid for within the period of Discount, what is the total cost of the purchased merchandise?

4. The receivable documents ("notes receivables") represent:

A. a short- or long-term asset and a more formal document than receivable accounts.

B. long-term asset and claim to insurance companies for damages suffered in the company.

C. All the answers are correct.

D. a short-term asset and a contributory repayment.

5. If a company's initial inventory had a balance of $10,000, during the period they made purchases for $100,000 and reported that the cost of the items sold was $99,500, what is the balance of the inventory account at the end of the period?