3. During 2020 Came Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2021. Nolan then used the inventory as collateral to borrow from Norwalk Bank remitting the proceeds to Carne. In 2021 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan. On whose books should the cost of the inventory appear at the December 31, 2020 balance sheet date? A) Came Corporation B) Nolan Corporation C) Norwalk Bank D) Nolan Corporation, with Came making appropriate note disclosure of the transaction 6. Which of the following is a characteristic of a perpetual inventory system? A) Inventory purchases are debited to a Purchases account. B) Inventory records are not kept for every item. C) Cost of goods sold is recorded with cach sale. D) Cost of goods sold is determined as the amount of purchases less the change in inventory 7. Which of the following is included in inventory costs? A) Product costs. B) Period costs C) Product and period costs. D) Neither product or period costs. 8. Which of the following recording procedures would result in the highest net income for 20201 1. Recording purchases at gross amounts 2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement A) I B) 2 C) Either 1 or 2 will result in the same net income D) Cannot be determined from the information provided 9. Walsh Retailers purchased merchandise with a list price of $150,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable. Walsh should record the cost of this merchandise as A) $105,000 B) $108,000. C) $117,000. D) $150,000 10. Which method may be used to record cash discounts a company receives for paying suppliers promptly? A) Net method B) Gross method. C) Average method. D) Both the net method and the gross method