27) 27) Using a perpetual inventory system, the purchase of inventory on account would be recorded as: A) Debit Cost of Goods Sold: Credit Inventory B) Debit Inventory: Credit Sales Revenue C) Debit Purchases: Credit Accounts Payable D) Debit Inventory, Credit Accounts Payable 28) 28) Using a perpetual inventory system, the sale of inventory on account would be recorded A) Debit Cost of Goods Sold; Credit Inventory B) Debit Inventory: Credit Sales Revenue C) Debit Accounts Receivable; Credit Sales Revenue D) Both a. and c. are correct 29 29) When a company determines that the net realizable value of its ending inventory is lower than its cost, what would be the effect(s) of the adjustment to write down inventory to net realizable value? A) Decrease total assets. B) Decrease net income. C) Decrease retained earnings. D) All of these answer choices are correct. 303 30) 30) Using a periodic inventory system, the purchase of inventory on account would be recorded as: A) Debit to Cost of Goods Sold; Credit Inventory B) Debit Inventory: Credit Sales Revenue C) Debit Purchases; Credit Accounts Payable D) Debit Inventory: Credit Accounts Payable 31) 31) Research and Development Costs: A) Are recorded as research and development assets. B) Are capitalized and then amortized. C) Should be included in the cost of the patent they relate to. D) Should be expensed. 32) Which of the following expenditures should be recorded as an expense? A) Repairs and maintenance that maintain current benefits. B) Adding a major new component to an existing asset. C) Replacing a major component of an existing asset D) Successful legal defense of an intangible asset