Question 13 Which of the following statements about the periodic inventory system is/are TRUE? 1 Point I. Under the periodic inventory system, the entry to record a sale includes a debit to cost of goods sold and a credit to inventory. II. Under the periodic inventory system, purchase returns are recorded by debiting purchase returns and allowances and crediting accounts payable. (A) Statement I B Statement II Both statements are true. DNeither of the statements is true. Question 14 Statement. A merchandising business purchase raw materials and then develop it into a finished product. Statement II. Both a merchandising and a manufacturing business are prone to incur storage costs. A Both Statements are TRUE (B) Both Statements are FALSE (C) Only Statement is TRUE DOnly Statement Illis TRUE Question 15 Which is an example of a nominal and contra account? (A) Accumulated depreciation B Sales returns and allowances Allowance for doubtful accounts D Freight-in Question 16 A perpetual inventory system would likely be used by a[n) A luxury jewelry store B hardware store C) drugstore Dconvenience store Question 17 Statement I, A trade discount has no account of its own and requires special accounting entry. Statement II: The perpetual inventory system uses a purchases account. A Both Statements are TRUE B Both Statements are FALSE (C) Only Statement is TRUE (D) Only Statement is TRUE Question 18 The use of Purchase discount lost account implies that the recorded cost of a purchased inventory is the A Invoice price Invoice price plus any Purchase discount lost Invoice price less Purchase discount taken Invoice price less the purchase discount allowable, whether taken or not 1 Point 1 Point 1 Point 1 Point 1 Point