FMG TIL 9) GST/HST paid on the purchase of inventory an additional cost that must be absorbed by the merchandise company b) not included in inventory because it is recoverable. recorded as an operating expense on the income statement recorded as additional freight costs and included in the calcuno ded in the calculation of the cost of goods sold. 10) We that is usually evidenced by a formal instrument of credit is an) The receivable that is usually evidenced by a forma a) trade receivable. b) note receivable. c) accounts receivable. d) note payable. 11) If ending inventory is overstated in 2021. and no further errors are made in 2022, then promt be a) overstated in 2021 and understated in 2022. b) understated in 2021 and overstated in 2022. c) overstated in both 2021 and 2022. d) overstated in 2021 and correct in 2022. 12) Revaluation of inventories to net realizable value should occur a) only if the amount is material. b) at year end only. c) in the period during which the decline occurs. d) at management's discretion