redponses must be entered on the computerized scantron form provided to you. These pages will not be 1. In a perpetual inventory system, the Cost of Goods Sold account is used Multiple Choice Questions graded only when a cash sale of merchandise occurs. b. a. only when a credit sale of merchandise occurs. only when a sale of merchandise occurs. d. c. whenever there is a sale of merchandise or a return of merchandise sold As a result of a thorough physical inventory. Horace $3 2. Company determined that it had inventory worth 20,000 at December Consignment currently has goods worth $47,000 on its sales floor that belong to Horace but are being sold on consignment by Kerschel. The selling price of these $22,000 of goods that were shipped on December 27, FOB destination, that will be received by Horace on January 3. Determine the correct amount of inventory that Horace should report. 31, 2018. This count did not take into consideration the following facts: Kerschel goods is $75,000. Horace purchased a $320,000. b. $340,000. c. $367,000. d. $387.000. 3. Internal control is defined, in part, as a plan that safeguards a. all balance sheet accounts. b. liabilities c. assets. d. capital stock. 4. Which one of the following is not a primary problem associated with accounts receivable? a. b. c. d. Depreciating accounts receivable Recognizing accounts receivable Valuing accounts receivable Disposing of accounts receivable In periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the a. FIFO method b. LIFO method c. average-cost method. d. tax method. 5. A debit balance in the Allowance for Doubtful Accounts a. is the normal balance for that account. b. indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. c. indicates that actual bad debt write-offs have been less than what was estimated. d. cannot occur if the percentage of sales method of estimating bad debts is used. 6