A method of allocating merchandise cost that assumes the sales in the period were made from the recently purchased merchandise and its earliest merchandise bought remains in the inventory is called the

(2pts)

Question 40 - A method of allocating merchandise cost that assumes the sales in the period were made from the recently purchased merchandise and its earliest merchandise bought remains in the inventory is called the

	last-in, first-out method.
	first-in, first-out method.
	specific identification method.
	weighted-average method.

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include

(2pts)

Question 39 - When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include

	debiting Accounts Receivable and crediting Sales.
	debiting Accounts Receivable and crediting Merchandise Inventory.
	debiting Accounts Receivable and crediting Cost of Goods Sold.
	debiting Cost of Goods Sold and crediting Sales.

When purchasing merchandise for cash, record the transaction in the

(2pts)

Question 38 - When purchasing merchandise for cash, record the transaction in the

	sales journal.
	cash receipts journal.
	cash payments journal.
	purchases journal.