1. Under the periodic system, Sales Returns and Allowances are a) Added to the inventory account b) Subtracted from the inventory account c) Added to Sales d) Subtracted from Sales

2. How do Sales Returns and Allowances affect Sales, and what is the normal balance of Sales Returns and Allowances? Effect on Sales Normal Balance a) Increase Credit b) Increase Debit c) Decrease Credit d) Decrease Debit

3.Which of the following accounts is unique to a merchandising company? a) Cash b) Accounts Receivable c) Inventory d) Accounts Payable

4.FACTUAL INFORMATION: Beginning inventory $ 2,000 Purchases $ 38,000 Ending inventory $ 8,000 How much is cost of goods sold? a) $48,000 b) $40,000 c) $32,000 d) $30,000

5.What is the normal balance of the following accounts? Sales Sales Discounts a) Debit Credit b) Debit Debit c) Credit Debit d) Credit Credit

6.Under the periodic inventory system, how are purchase returns and allowances recorded? Purchase Returns Accounts and Allowances Payable a) Debit Credit b) Debit Debit c) Credit Credit d) Credit Debit