II. FILL IN THE BLANKS - 2 Points each Instruction: Indicate your answer by writing the term or phrase that would complete the sentence. 1. The inventory system relies heavily on a physical count such that any lost or spoiled inventory is absorbed by the cost of goods sold in the computation. 2. The is the average time period for cash to be converted to inventory to receivable then back to cash. 3. is defined as the span of time covered by an income statement. 4. are granted by the seller to customers for early payment of amounts owed. 5. The accounting for receivables that appear to be uncollectible procedure called the recognizes the expense only when accounts are judged to be worthless