Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the current year, Speed World purchased eight of these bikes at the following costs: On July 28, Speed World sold four Kazomma 900 dirt bikes to the Vince Wilson racing team. The remaining four bikes remained in inventory at September 30, the end of Speed World's fiscal year. c. Suppose Speed World uses the FIFO method to account for its inventories. At September 30, Speed World found that the replacement cost of each bike was $5,000 per unit. Record journal entries to apply the lower-of-cost-or-market (LCM) rule on the basis of total inventory. Use $3,500 as the "level of materiality" in deciding whether to debit losses to cost of goods sold or to a separate loss account. e. Which of the following sentences are true? Choose all the correct answers. There may be more than one. A. If the sale was made on September 30 instead of July 28, then the LIFO assumption would result in the same cost of goods sold estimate in the perpetual inventory system and in the periodic inventory system. B. If inventory prices are decreasing over time, then the LIFO assumption would result in a higher cost of goods sold estimate in the periodic inventory system than in the perpetual inventory system. C. The FIFO assumption results in the same cost of goods sold estimate in the perpetual inventory system and the periodic inventory system. D. A company that uses a periodic inventory system can value their inventories under the cost flow assumption that saves the most taxes in one year, and switch to the cost flow assumption that reports the highest income in another year