QUESTION 7 Which of the following is a true statement for a company using a perpetual inventory system 1.Purchase returns and allowances is a contra-account to revenue. 2. Sales returns and allowances is a contra-account to revenua. 3.Purchase returns and allowances is a contra-account to inventory. Sales returns and allowances is a conta-account to inventory QUESTION 8 When a customer returns merchandise that it recently purchased on credit, the journal entry to record this transaction would credit Accounts Receivable and the Cost of Goods Sold. It would also debit 1.Sales Returns& Alowances and Inventory 2.Sales Revenue and Inventory .Sales Discounts and Inventory 4.Sales Returns and Allowances and Cash QUESTION 9 A company purchased $20000 of merchandise on credit under discount terms of 2/10, nv30. The company records its purchase using the "Gross Invoice Price" rather than the "Net Cost. If the company pays its supplier for this merchandise 8 days after purchasing it, the company should record which journal entry on that date: 1.db Accounts Payable$20,000 cr Purchase Discount Taken00 r Cash19,600 cr Purchase Discount Taken.400 3.db Accounts Payabl$19,600 db Purchase Discount Taken..00 4.db Accounts Recelvable.$19,600 db Purchase Discount Taken400 QUESTION 10 Select the account which would NOT appear on the After-Closing Trial Balance. 1.Accounts Recevable 2.Cost of Goods Sold 3.Retained Earnings 4.Cash