3. Assume that the ending balance of total receivables amounted to $200,000 and the ending balance in the allowance for doubtful accounts was $25,000. This means that: a. Cost of goods sold equals $90,000 b. The net realizable value of the receivables is $175,000 c. Receivables of $25,000 should be written off. d. None of the above. 4. An intangible asset a. derives its value from the rights and privileges it provides the owner. b. is worthless because it has no physical substance. c. is converted into a tangible asset during the operating cycle. d. cannot be classified on the balance sheet because it lacks physical substance. 1. If a purchaser using a perpetual inventory system pays the transportation costs, then the a. The cost of merchandise Inventory purchased is increased. b. Merchandise Inventory account is not affected. c. Freight-out account is increased. d. Delivery Expense account is increased. 2. When using the periodic system the physical inventory count at the end of a period is used to determine a. only the sales value of goods in the ending inventory. b. both the cost of the goods in ending inventory and the sales value of goods sold during the period. c. both the cost of the goods sold and the cost of ending inventory. d. only the cost of merchandise purchased during the period