13) Assuming the company uses the earnings approach for revenue recognition, using a perpetual inventory system, the respective normal account balances of Merchandise Inventory, Sales Returns and Allowances, and Cost of Goods Sold are A) debit, debit, debit. B) credit, credit, credit. C) debit, debit, credit. D) debit, credit, credit. 15) A journal entry is NOT required for A) EFT collections. B) bank service charges. C) outstanding cheques. D) NSF cheques. 16) Credit losses are are considered A) an internal control weakness. C) a necessary risk of doing business. B) an avoidable cost of doing business. D) avoidable unless there is a recession 18) If a company determines cost of goods sold each time a sale occurs, it A) must have a computer accounting system B) uses a periodic inventory system. C) must have a service business. D) uses a perpetual inventory system. 19) Goldfish Pro Company sells fly fishing lures and uses a perpetual inventory system. The beginning balance of the inventory and transactions during September were as follows: September 1: Balance: 10 units @ $13 September 7: Purchased 30 units @ $14 September 10: Sold 18 units @ $17 September 22 Purchased 25 units @ $17 September 29: Sold 22 units @ $19 What inventory cost determination method was used if the ending inventory is determined to be $425? A) FIFO B) weighted average C) average costing D) specific identification 20) An employee authorized to sign cheques should not record A) cash payment transactions. B) sales transactions. C) mail receipts. D) owner cash contributions