CDX Inc., uses a periodic inventory system. Consider the following summarized transactions and selected information for CDX's most recently completed fiscal year: Gross purchases (all on account) $71,700 Purchases returns and allowances 2,000 Merchandise inventory, January 1 15,000 Merchandise inventory, December 31 19,000 Cash payment to suppliers 52,000 Based on these details, the cost of sales for the year is: O A. $67,700 O B. $13,700 O C. $65,700 O D. $48,000 The ending inventory of Corner Store Inc. includes items which originally cost $10,000. These items have a market value of $11,000 and a net realizable value of $9,000 at year end. Accordingly, the inventory should be reported on the company's statement of financial position at: O A. $11,000 O B. $10,000. O C. $9,000. O D. $9,500 (the average of $10,000 and $9,000). O E. Another amount that can only be determined by a physical count of the inventory at year end. Ozak Company reported the following information for a recent year: gross sales, $196,500; sales returns and allowances, $3,700, sales discounts, $1,750 and shipping expenses, $1,400. Ozaks net sales would equal: O A. $196,500 OB. $192,800 O C. $191,050 O D. $189,650 Under the periodic inventory system, O A. The cost of sales is recorded for each sale. O B. No separate information is kept to control inventory shrinkage. o C. The ending inventory is calculated by subtracting the cost of sales from the cost of goods available for sale. OD. The cost to run the system is usually higher than that for the perpetual inventory system