138. Under the periodic inventory system:

& questions 139, 140, 141

138. Under the periodic inventory system: A. inventory must be counted at the beginning and end of each accounting period. B. inventory must only be counted at the end of each accounting period. (The ending inventory from the previous period can be used as the beginning inventory for the next period.) C. inventory does not have to be counted. (It can be taken from the accounting records) D. inventory levels must be counted every day. The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Mulberry Street Sportswear as they appear on the 12/31/08 adjusted trial balance Accounts Payable Accounts Receivable Advertising Expense Cost of Goods Sold Freight-Out Insurance Expense Interest Expense Merchandise Inventory Rent Expense Sales Sales Discounts Sales R & A Uncarned Revenue 10,000 11,000 12,000 89,000 6,000 1,000 2000 20,000 12,000 160,000 11,000 19,000 2,000 139. Net Sales for 2008 would be A. $30,000 B. $124,000 C. $130,000 D. $160,000 140. Income from Operations for 2008 would be A. $6,000 B. S10,000 C. $11,000 D. $12,000 141. The Gross Profit Percentage for 2008 would be A. 25.6% B. 31.5% C. 55.6% D. 68.5%