13. The Merchandise Inventory account had a balance of $45,000 on December 31, but a physical inventory taken on that date indicated that $44,400 was actually on hand. a. Merchandise Inventory 600 Cost of Goods Sold 600 b. Cost of Goods Sold 600 Merchandise Inventory 600 Merchandise Inventory 600 Sales 600 d. Sales 600 Merchandise Inventory 600 Sales Returns and Allowances 600 Merchandise Inventory 600 C. e. III. Questions 14 to 22 cover various topics 14. Which of the following accounts is a control account with a subsidiary ledger? a. Merchandise Inventory d. bandc b. Accounts Receivable e. a, b, and c Accounts Payable c. 15. Which of the following statements is true when merchandise is sold FOB shipping point? Freight Costs are paid by Buyer Seller Seller Seller Buyer Title passes when merchandise is delivered to Buyer Buyer Freight carrier Seller Freight carrier RFQT 16. Which of the following items should be included in a December 31 year-end physical inventory by Fantasia, Inc.? a. Goods sold but being held for customer pickup b. Goods in transit from a supplier shipped FOB destination. C. Goods shipped on consignment by Fantasia, Inc. to another company. d. Goods sitting in Fantasia's warehouse on December 31 that are being held on consignment from another company, None of the above. e. 17. a. b. c. e. 18. On December 31, 2020, the Dumbo Co took a physical inventory of its merchandise, but inadvertently omitted $3,000 worth of goods stored in a separate location. The effect of this error on its financial statements would be to: Understate assets, liabilities and capital on the year-end balance sheet, and understate net income for the year. Understate assets and capital on the balance sheet, and overstate net income. Understate assets and capital on the balance sheet, but have no effect on net income. d. Understate assets and capital on the balance sheet, and understate net income. None of the above Assume that the inventory error in question #17 above went undiscovered, and that the inventory taken on December 31, 2020 is correctly stated. The effect of the original inventory error on Dumbo's 2020 financial statements would be to: Have no effect on the balance sheet or net income. Overstate net income for the year ended December 31, 2020, but have no effect on assets, liabilities, and capital on the year-end balance sheet. Understate assets and capital on the balance sheet, and overstate net income. Have no effect on the balance sheet, but understate net income. None of the above The ABC Co. uses the periodic inventory method, and the following information is available to answer questions 19 to 22 Beginning inventory 200 at $10 1st purchase 300 at $11 2nd purchase 300 at $12 Units sold during the year 300 The cost of goods sold under FIFO is: a. $5,300.00 b. $3,600.00 c. $3,337.50 d. 53,100.00 e. None of the above a. b. C. d. e. 6/7/72 19. 20. The ending inventory under LIFO is: a $4,900.00 b. $5,300.00 c. $5,562 50 d. $5,800.00 e. None of the above The ending inventory under the weighted-average method is: a. $5,800.00 b. $5,562.50 C. $5,500.00 d. $5,300.00 e. None of the above 21. 22 Assuming prices continue their present trend (see previous data), which of the following methods would tend to yield the smallest income tax over the years? b. FIFO c. weighted average d. FIDO e. FIFI a. LIFO