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8. The revenue recognition principle requires retailers to recognise sales revenue when it is earned which is not necessarily the same time that the cash is received. 9. Sales Allowances and Sales Discount are both designed to encourage customers to pay their accounts promptly. 10. A retailer using a perpetual inventory system will usually need to make an adjusting entry to ensure that the recorded inventory agrees with physical inventory count. 11. Under a periodic inventory system, freight-in on inventory purchases should be charged to the inventory account. 12. Each of the required steps in the accounting cycle for a service company applies to a merchandising company. Required: Identify each statement as true or false. If false, indicate how to correct the statement