11) The two main ways to track physical units of inventory within the accounting syste are: a) Purchase and Sale b) Perpetual and Periodic c) Net and Gross d) Perpetual and Episodic 12) Bonita Industries uses the gross method and purchased $5,000 of merchandise on account for resale purposes. Bonita plans to sell the merchandise for $7,500. If Bonita returned $1,000 of merchandise for credit, the journal entry to record the return would include a a) Credit to Cash for $1,000 b) Debit to Accounts Payable for $1,000 c) Credit to Inventory for $1,500 d) Debit to Sales for $1,500 13) A company uses the perpetual inventory method. It sell Inventory with a cost of $500 for S625 Cash. Which of the following is the correct journal entry to record this transaction? a) Dr Cash $625, Cr Sales Revenue $500, Cr. Inventory $125 b) Dr. Cash $500, Cr Inventory $500 c) Dr. Cash S625, Cr. Inventory $500, Cr. Sales Revenue $125 d) Dr Cash S625, Cr Sales Revenue $625; Dr COGS S500, Cr Inventory $500 14) Orleans Enterprises purchased $37,500 of merchandise on account, terms 2/10, n/30. Assuming Orleans uses the net price method to account for purchase discounts, the journal entry to record the purchase would include a A) debit to Inventory for $37,500 B) credit to Cash for $36,750 C) debit to Purchase Discounts Lost for $750 d) credit to Accounts Payable for $36,750 15) Orleans Enterprises purchased $37,500 of merchandise on account, terms 2/10, n/30. Assuming Orleans uses the net price method to account for purchase discounts, and it pays for the merchandise on the 9th day after the invoice date, the journal entry to record the payment would include a: A) credit to Inventory for $37,500 B) debit to Accounts Payable for $37,500 C) debit to Purchase Discounts for $750 D) credit to Cash for $36,750 16)On what financial statement is Cost of Goods Sold reported? a) Statement of Earned Capital/Retained Earnings b) Balance Sheet c) Income Statement d) More than one of the above