23) Using a perpetual inventory system, the purchase of inventory on account is recorded A) Debit to Inventory B) Debit to Cost of Goods Sold. C) Debit to Accounts Payable. D) Credit to Sales Revenue 24) In a perpetual inventory system, the entry at the time of a sale to record the cost of the inventory sold includes a: A) Debit to Accounts Receivable. B) Credit to Cost of Goods Sold. C) Not recorded at the time of the sale. D) Debit to Cost of Goods Sold. 25) A company's beginning inventory is $36,000 and its ending inventory is $48,000. The inventory turnover is 6 times. Cost of goods sold for the year must equal: A) S272,000. B) $216,000. C) $252,000. D) $288,000. 26) Which of the following subsequent expenditures would not be capitalized? A) Ordinary repairs and maintenance. B) Additions. C) Improvements. D) Successful legal defense of intangible assets. 27) Schwinn Inc. purchased equipment for $180,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $30,000 at the end of five years. Using the straight-line method, depreciation expense for 2021 would be: A) $36,000 B) $18,000. C) $150,000 D) $30,000 28) A company purchases a piece of equipment on January 1, 2021, for $280,000 and the equipment has an expected useful life of five years. Its residual value is estimated to be $40,000. Assuming the company uses the straight-line depreciation method, what should be the balance in accumulated depreciation for the equipment as of December 31, 2023 (three years later)? A) 596,000. B) $48,000. C) $144,000 D) $184,000. 5