5. When preparing a worksheet for a merchandising inventory system, the cost of goods sold can be derived from the balances of several accounts in the Income Statement columns. 6. Under the perpetual inventory system, the ending nerchandise inventory balance is closed at the same time as Cost of Goods Sold. 7. When preparing a worksheet for a merchandising entity that uses the periodic inventory system, the merchandise inventory amount shown on the trial balance will be carried over to the Balance Sheet debit column. 8. On the worksheet of a merchandising entity that uses the periodic inventory system, both Purchases and Purchases Returns and Allowances appear in the Income Statement columns. 9. The Purchases account is closed to the Merchandise Inventory account. 10. The ending inventory amount appears in both Income Statement columns on the worksheet of a merchandising entity that uses the periodic inventory system. 11. Under the periodic inventory system, the Merchandise Inventory account appears in the closing entries made at the end of the period. 12. When preparing closing entries under the periodic inventory system, Sales and Purchases Returns and Allowances are both closed in the same entry. 13. Sales Discounts is a contra-revenue account with a normal credit balance. 14. Purchases Discounts would be recorded as a credit.