16. Prepare the journal entries to record the following merchandise transactions. AA Company uses the perpetual inventory method and purchased $8000 of merchandise on September 25. Terms of the purchase included vender terms 2/10 n/30. AA company paid cash for the FOB shipping charges of $50,00. The invoice was paid in full on October 4 PR Dr Cr Date PR Dr Cr Date 17. Safeguarding assets, processing information accurately, and ensuring companies comply with laws and regulation are internal controls defined by the a Internal Revenue Service b. Sarbanes-Oxley Act c. Generally Accepted Accounting Principles d. Security and Exchange Commission 18. When using a perpetual inventory system, the journal entry to record the cost of merchandise sold is: a. Dr COMS; Cr Merchandise Inventory b. Dr COMS, Cr Sales c. Dr Merchandise Inventory, CY COMS d. Dr Goods Available for Sale; Cr Sales 13. The Sarbanes-Oxley Act applies only to companies whose stock is traded on public exchanges. It can be said that the Act: a. Is designed to bring effective internal control. b. Contradicts the generally accepted accounting principles known as GAAP. c. Puts pressure on working individuals to be financially sound. d. Requires managers to overlook employee fraud to a certain degree. 14. Accompanying the bank statement was a debit memo for bank service charges. Prepare the general journal entry required for a $25 bank service charge. PR Dr Cr Date 15. When ending inventory is made up of the oldest purchases, the accounting team knows the company uses inventory methods. a. LIFO b. FIFO c. Specific Identification d. Average Costing