FILL-IN-THE-BLANK PRINCIPLES AND TER INSTRUCTIONS: Complete each of the following statements by writing the appropriate Answers column. For Answers 0. In which section of the balance sheet is merchandise inventory reported? 1. current assets When the inventory of merchandise can be determined only by a detailed count of the items on hand, the system is called -3. Would a perpetual inventory system normally be practical for the following types of businesses without a computerized system? (answer yes or no) 2. Retail jewelry dealer 3. Retail clothing store 4. The subsidiary ledger containing a perpetual record of each type of merchandise available for sale is called the 5. If the cost of an item of inventory is $55, the current replacement cost S $50, and the selling price is S95, the amount included in inventory according to the lower of cost or market concept is 6. Merchandise in transit should be included in the seller's inventory if the 6 terms are FOB In recording the cost of merchandise sold for cash, based on data 7. available from perpetual inventory records, the account credited is 8. The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called 9. The method that is useful for estimating the cost of inventory that has 9. been destroyed is 10. During a period of consistently falling prices, the method (FIFO or LIFO) that will result in reporting the greater cost of merchandise sold i. Inventory at the end of the current fiscal year was overstated. 10. State 11-14. whether each of the following will be overstated, understated, or not affected: Cost of merchandise sold reported on the income statement for the current year 11. 12. Net income reported on the income statement for the current year 13. Owner's equity reported on the balance sheet at the end of the 12. 13._ 14. current year 14. Current assets on the balance sheet at the end of the current year . 15. Damaged merchandise that can only be sold at below cost should be valued at 15. On the last day of the current year, a manufacturer delivers merchandise to a retailer on consignment. merchandise would be included in the inventory of the 16. The unsold consigned 16. 17. Inventory turnover of 36 means that inventory turns over every days 17