Use the following information to answer the next 11 questions. SELECT ALL ANSWERS THAT APPLY.

On May I. Sam Company sold $5,000 of inventory to Bob Company. The sale was made on account and Sam granted Bob credit terms of 2/10. n/30. The inventory cost Sam Company $3,000. On May 3, Bob returned $1,000 of the inventory to Sam. (The inventory returned by Bob cost Sam $600.) On May 9, Bob paid Sam in full for the amount due.

1. What account will Bob debit on May I if the periodic inventory system is used?

A) Accounts Payable

B) Cost of Goods Sold

c) Merchandise Inventory

D) Purchases

E) None of the above

2. What account will Bob debit on May I if the perpetual inventory system is used?

A) Accounts Payable

B) Cost of Goods Sold

C) Merchandise Inventory

D) Purchases

E) None of the above

3. What account will Sam debit on May l if the periodic inventory system, is used?

A) Accounts Payable

B) Cost of Goods Sold

C) Merchandise Inventory

D) Purchases

E) None of the above

4. What account will Sam debit on May I if the perpetual inventory system is used?

A) Accounts Payable

B) Cost of Goods Sold

C) Merchandise Inventory

D) Purchases

E) None of the above

5. What journal entry will Bob record on May 3 if the periodic inventory system is used?

A) debit Accounts Payable, $1,000; credit Merchandise Inventory, $1,000.

B) debit Accounts Payable, $1,000; credit Purchases, $1,000.

C) debit Accounts Payable, $1,000; credit Purchase Discounts, $1,000.

D) debit Accounts Payable, $1,000; credit Purchase Returns and Allowances, $1,000.

E) debit Merchandise Inventory; $600; credit Cost of Goods Sold, $600.

6. what journal entry will Bob record on May 3 if the perpetual inventory system is used?

A) debit Accounts Payable, $1,000; credit Merchandise Inventory, $1,000.

B) debit Accounts Payable, $1,000; credit Purchases, $1,000.

C) debit Accounts Payable, $1,000; credit Purchase Discounts, $1,000.

D) debit Accounts Payable, $1,000; credit Purchase returns and Allowances, $1,000.

E) debit Merchandise Inventory; $600; credit Cost of Goods Sold, $600.

7. what journal entry will Sam record on May 3 if the periodic inventory system is used?

A) debit Merchandise Inventory, $600; credit Cost of Goods Sold, $600.

B) debit Sales, $1,000; credit Accounts Receivable, $1,000.

C) debit Sales, $1,000; credit Cash, $1,000.

D) debit Sales Returns and Allowances, $1,000; credit Accounts Receivable, $1,000.

E) debit Sales Returns and Allowances, $1,000; credit Cash, $1,000.