The balance of the Inventory account is updated only at the end of the accounting period in a ___________________

system.

2. The ____________________ ____________________ system keeps a continual track of the quantity and cost of the

inventory on hand.

3. Inventory is _____________________ when there is inventory shrinkage.

4. A liability on the balance sheet that records money received for sale or service not yet performed is called

______________________ ________________________.

5. The ending inventory of period one becomes the ______________________ of period two.

6. When unearned revenue is earned, the liability will go ______________________.

7. At the end of a period, the inventory account is _________________________.

8. Gross sales less sales discounts and sales returns and allowances equals ______________________

_____________________.

9. When unearned revenue is earned, the revenue will go ______________________.

10. Sales returns and allowances are used in calculating ______________________ ______________________.

11. Ending inventory represents goods not yet __________________________.

12. Inventory is increased by a ____________