d. General journal. e. Purchases journal. 4. When purchasing merchandise for resale on account, record the transaction in the: a. Sales journal. b. Cash receipts journal. c. Cash payments journal. d. Purchases journal. e. All of the above. 5. When purchasing merchandise for resale for cash, record the transaction in the: a. Sales journal. b. Cash receipts journal. c. Cash payments journal. d. Purchases journal. e. None of the above. 6. The inventory system in which the merchandise inventory account balance is merely a record of the most recent physical inventory count is called: a. perpetual; b. FIFO c. LIFO d. periodic e. specific identification 7. A method of allocating merchandise cost that requires each item sold and each item remaining in inventory to be separately identified with respect to its purchase cost is called: a. last-in, first-out b. first-in, first-out c. last-in, last-out d. specific identification costing e. perpetual (Deduct 2 points for each incorrect answer) BONUS (10 Points) There are two deliberate errors in one of the problem questions (neither spelling nor grammatical). The errors have nothing to do with correctly solving the problems. List them below. 6