7. Which of the following accounts is increased with a debit? a. Dividends b. Legal fees earned. c. Unearned revenue. d. Common shares. On the Income Statement, the beginning merchandise inventory is added to the cost of goods purchased which determines the: a. Cost of goods available for sale. b. Income from operations. c. Gross profit. d. Cost of goods available for sale. Under a periodic inventory system, the purchase of merchandise is debited to the: a. Merchandise inventory account. b. Cost of goods sold account c. Purchases account. d. Freight-in account. 10 The primary difference between a periodic and a perpetual inventory system is that a periodic system a. b. c. d. Keeps a detailed record showing the inventory on hand at all times. Provides better control over inventories Records the cost of goods sold on the date the sale is made. Determines the cost of goods sold at the end of the accounting period. Which of the following errors, each considered individually, would cause the trial balance to be out of balance? a. A payment of $164 to a creditor was posted as a debit to Accounts Payable anda b. Cash received from a customer on account was posted as a debit of $350 to Cash c. A payment of $59 for supplies was posted as a debit of $95 to Supplies and a d. A transaction was not poste