7) An invoice of $1,000 for merchandise purchased is showing 3/15. n30 as terms of credit. If the invoice is paid on or before the fifteenth day after the invoice date, the amount to be paid is A) $970 B) $1,000 C) $1,030 D) $1,033 8) Which of the following is NOT an inventory costing method? A) specific identification B) lower of cost or market C) last-in, first-out D) first-in, first-out 9) A company that uses the perpetual inventory system sold goods to a customer on account for $2,300. The cost of the goods sold was $1,150. Which of the following journal entries correctly records this transaction? A) Cost of Goods Sold 2.300 Sales Revenue 2.300 B) Merchandise Inventory 2.300 Cost of Goods Sold 2.300 C) Accounts Receivable 2.300 Cash 2.300 Cost of Goods Sold 1,150 Merchandise Inventory 1,150 D) Accounts Receivable 2.300 Sales Revenue 2,300 Cost of Goods Sold 1,150 Merchandise Inventory 1,150 10) A company that uses the perpetual inventory system sold goods for $2.400 to a customer on account. The company had purchased the inventory for $800. Which of the following journal entries correctly records the cost of goods sold? A Cost of Goods Sold 800 Sales Revenue 800 B) Merchandise Inventory 800 Cost of Goods Sold 800 C) Cost of Goods Sold 800 Merchandise Inventory 800 D) Accounts Receivable 800 Sales Revenue 800 11) Fast selling inventory is less likely to A) become worthless B) require higher storage costs C) require higher insurance costs D) All statements are correct. 12) Which of the following is a benefit provided by internal control? A) ensuring timely collection of accounts receivables B) ensuring that collusion will never happen C) ensuring that a business is profitable D) promoting operational efficiency