1. Which of the following is inventory?

		Goods held for sale in the normal course of business
		Office supplies that a company plans to use in the next few months
		Equipment used to manufacture products which will be sold later
		Raw materials and work in process

2. Sales Returns and Allowances are reported on the:

		income statements as a contra-revenue account
		balance sheet as a contra-inventory account
		income statement as a reduction to Cost of Goods Sold
		balance sheet as a reduction to Gross Profit