7. Which of the following accounts will not be closed to Retained Earnings year end? A. Selling expenses B. Cost of Goods Sold C. Estimated Inventory D. Freight expenses E. All will be closed to Retained earnings 8. Which companies offer a trade discount? A. Service: B. Manufacturing C. Wholesalers D. All the above 9. The physical count of inventory is $590,000, inventory records indicate $625,000. What is the necessary entry to record inventory shrinkage? A. debit Inventory, $35,000; credit Cost of Goods Sold, $35,000 B. debit Cost of Goods Sold, $35,000; credit Inventory, $35,000 C. debit Cost of Goods Sold, $625,000; credit Inventory, $625,000 D. debit Inventory, $590,000 credit Cost of Goods Sold, $590,000 10. The income statement that does not include gross profit. A. Single-step B. Multi-step C. Revenue statement D. Operating statement 11. Which of the following expenses would classified as a selling expense on a multi-step income statement? A. Depreciation expense-office equipment B. Sales salaries expense C. Insurance expense D. Office supplies expense 12. Operating expenses include all the following except: A. Selling expenses B. Administrative expenses C. Other expenses D. All the above are operating expenses 13. Sold merchandise on account that is damaged or defective. What account should be debited to record the return? A. Accounts receivable B. Cash C. Customer refunds payable D. Cost of goods sold