O debit Cash; credit Sales QUESTION 3 If your company uses the periodic method, you record a sale on account by O debiting Account Receivable and crediting Sales only; you do not make an entry to update Inventony debiting Account Receivable and crediting Sales in entry 1; debiting COGS and crediting Inventory in entry 2 O debiting Account Receivable and crediting Sales in entry 1; debiting COGS and crediting Purchases in entry 2 debiting Sales and crediting Account Receivable only, you do not make an entry to update Inventory QUESTION 4 Merchandise on hand at the end of the year (ie. ending inventory) appears on the balance sheet as a current asset The cost of the merchandise sold during the ye on the income statement as an expense True False QUESTION 5 ABC Company purchased $15,000 of merchandise on account from XYZ Company; terms are 1/15, n/eom, FOB shipping point. Assume both compa inventory system and the buyer recorded the purchase at gross. If the invoice is paid within the discount period, how is the discount record ABC debits Sales Discounts; XYZ credits Purchase Discounts ABC credits Merchandise Inventory; XYZ debits Sales Discounts ABC debits Purchase Discounts, XYZ credits Sales Discounts ABC debits Merchandise Inventory: XYZ credits Sales Discounts ABC debits Sales Discounts: XYZ credits Merchandise Inventory ABC credits Purchase Discounts; XYZ debits Sales Discounts Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All