The Corbit Corp. sold merchandise for $10,000 cash. The cost of the goods sold was $7, 590. The journal entries to record this transaction under the perpetual inventory system would be When merchandise sold is assumed to be in the order in which the purchases were made, the company is using a. average cost b. first-in, last-out c. first-in, first-out d. last-in, first-out Accumulated Depreciation appears on the a. income statement as an operating expense b. balance sheet in the long-term liabilities section c. balance sheet in the current assets section d. balance sheet in the property, plant, and equipment section If the cost of an item of inventory is $60 and the current replacement cost is $75, the amount included in inventory according to the lower of cost or market is a. $15 b. $75 c. $60 d. $135 The statement of retained earnings should be prepared a. before the income statement and balance sheet b. before the income statement and after the balance sheet c. after the income statement and balance sheet d. after the income statement and before the balance sheet