1. Unearned revenue is reported as an) current liability on the balance sheet. contra-asset account on the chart of accounts. owner's equity account on the work sheet. d asset on the balance sheet. 2. The income summary account, after adjusting entries are posted, reflects the beginning inventory amount. bending inventory amount. c. beginning and ending inventory amounts. 4 cash income from business transactions. 3. Which account balance is NOT used to compute the cost of goods sold? Sales Merchandise Inventory Purchases Purchases Discounts 4. Sports, Inc., plans to sell season football tickets for the 10 games played from September through November. These tickets sell for $5 each at the gate or for $45 per season package purchased before April 30. On April 30, the office reports that it has sold 200 season ticket packages and has only 50 left. The correct entry to record the sale of the season tickets is debit Cash and credit Unearned Revenue for $9.000. debit Cash and credit Revenue for $11,250. debit Unearned Revenue and credit Revenue for $9,000. a to determine cost of goods sold. 5. Under the perpetual inventory method, when inventory is purchased, Merchandise Inventory is debited and Cash or Accounts Payable is credited. bis credited and Cash or Accounts Payable is debited. and Accounts Payable are credited and Cash is debited. a and Accounts Payable are debited and Cash is credited. 6. Which of the following accounts would NOT be found under the heading of "Cost of Goods Sold" in a chart of accounts? Purchases Purchases Returns and Allowances Freight-In & Supplies