31. When the perpetual inventory system is used, which of the following accounts are closed by debiting income summary:

A. Purchases, Freight-In

B. Cost of Goods Sold, Delivery Expense

c. Purchase Discounts, Delivery Expense

d. Purchase Returns & Allowances

e. none of the above

32. Target Inc. reported the following information:

Description	December 31, YR01	December 31, YR02
Inventory	90	110
Sales	500	600
Cost of Goods Sold	300	400

What is the Inventory Turnover Ratio for the year ended December 31, YR02?

3.5 times b. 3.6 times c. 4.0 times d. 6.0 times e. none of the above

37. Foster Inc. issued an $80 check to record utility expense. Unfortunately, the check was incorrectly recorded in Forsters accounting as $800. The adjusting journal entry to correct this recording error would be:

A. Debit accounts receivable $80, Credit cash $80. B. Debit cash $720, Credit utility expense $720

c. Debit utility expense $720, Credit cash$720. D. Debit accounts receivable $800, Credit cash $800. E. none of the above