18) The ending Merchandise Inventory for the current accounting error have on Cost of Goods Sold and Net Income? period is understated by $2,700. What effect will this Understated Understated Understated Overstated Overstated Overstated Overstated Understated 19) A company purchased 100 units for S30 each on January 31, it units for $50 each from March 1 through December 31. If the company uses the first-in, method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume that the company uses a perpetual inventory system.) A) $4,250 B)$3,000 C)6,750 D) $4,000 purchased 150 units for $25 on February 28. It sold 150 first-out (FIFO) inventory costing 20) A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 each on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the last-in, first-out (LIFO) inventory costing method, what is the amount of cost of goods sold on the income statement for the year ending December 317 (Assume that the company uses a perpetual inventory system.) A) $4,000 B) $5,000 C)$3,000 D)$2,000 21) Which of the following is true of a control account? A) It is equivalent to a contra account and represents the offsetting nature of debits and credits on a firm's financial statements. B) It is a valuation account from which balances are added to another account C) Its balance equals the sum of the balances in a group of related accounts in a subsidiary ledger D) It holds individual accounts that support a general ledger account 22) A special journal is: A) an accounting journal that holds individual accounts that B) an accounting journal designed to record a specific type of transaction. C) a record of accounts that provi ledger account. D) a created list of the accounts used by a business entity to define each class of items for which cash is spent or received. support a specific general ledger account des supporting details on individual balances, the total of which appears in a general