Look at the following situations with the best answer

1. Company A came on the books from a sale made in 2020 on FOB Shipping Point terms. At the end of the period, the merchandise that was in transit en route to the buyer was included in A's physical inventory count.

2. Company A acquired a merchandise on December 31, 2020, with free terms on board destination (FOB destination). The merchandise was received on January 5, 2021. The purchase was recorded in 2020 before the merchandise was received but the merchandise was excluded from ending inventory. The company uses the periodic inventory system.

3. Provision to reduce inventory to Net Realizable Value

4. Returns on Purchases

5. Loss in inventory due to decrease in value

Answers

A. income and expense statement account with normal balance dr

b.counter inventory account with normal balance CR

c. A's cost of goods sold will be underestimated in 2020

D. A's cost of sold goods will be overestimated in 2020

e. A's cost of goods sold will be correct in 2020

f.against purchase account with normal balance CR

g.Inventory counter account with normal balance DR

h.income and expense statement account with normal balance CR

i.against purchase account with normal balance DR