D) a 1% discount is allowed if the customer pays the bill within 30 days. 7) The sales journal is used for A) recording cash receipts. recording purchases of merchandise. C) recording credit sales. D) recording cash sales. 8) Periodic inventory systems require updating of the inventory account A) after each sale. B) after each purchase. C) only at the end of a period. D) on a daily basis. 9) In a perpetual inventory system the inventory account A) is updated after every sale. B) is only updated at the end of period. C) is an asset account. D) both A and C are correct. 10) Returning damaged products to a supplier A) reduces inventory. B) increases inventory. C) reduces cost of goods sold. D) increases cost of goods sold. 11) Customer returns of product in new condition A) increase inventory. B) reduce inventory. C) reduce cost of goods sold. D) both A and C are correct. 12) What is the gross profit if 4 units are sold for $50 each and the cost of the sale is $40 per unit? A) $200 B) $160 C) $40 D) None of these answers are correct. 13) The time a customer is granted to pay the bill is the discount period