1. Under the perpetual inventory system, in addition to making the entry to record a sale, a company would a. debit Inventory and credit Cost of Goods Sold. b. debit Cost of Goods Sold and credit Purchases. c. debit Cost of Goods sold and credit Inventory. d. make no additional entry until the end of the period. (What happens under the periodic inventory system?) 2. The Sales Returns and Allowances account is classified as a(n) a. asset account. b. contra asset account. c. expense account. d. contra revenue account. 3. Anderson Inc. sells $1,200 of merchandise on account to Baltic Company with credit terms of 2/10,n/30. If Baltic Company remits a check taking advantage of the discount offered, what is the amount of Baltic Company's check? a. $1,176 b. $1,200 c. $1,080 d. $1,120 Piper Company sells merchandise on account for $1,800 to Morton Company with credit terms of 2/10,n/30. Morton Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Piper Company make upon receipt of the check