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Inventory Accounts for Unsold Goods

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Generally, the amount reported in the Inventory account will be the
_________ of the unsold goods owned by the company.

cost retail value

Under the periodic system for inventory, the buyer will record the
purchase of merchandise with a debit to this account.

Inventory Purchases Sales

Under the perpetual system for inventory, the buyer will record the
purchase of merchandise with a debit to this account.

Inventory Purchases Sales

The cost of inventory and the cost of goods sold should include
which of these costs?

freight-in freight-out

Freight-out can be used under which inventory system?

periodic perpetual both periodic and perpetual

Goods in transit at the end of an accounting period should be
reported on the balance sheet of the buyer when the terms are

FOB destination FOB shipping point

If a company overstates its ending inventory under the periodic system,
the company's gross profit and net income will be

overstated understated

The inventory cost flow that results in the most recent costs being
matched first with sales of the current accounting period is

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Solution Summary

The inventory accounts for unsold goods are examined.

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Solution is provided in a separate word document attached herewith.It is also produced as under.

Generally, the amount reported in the Inventory account will be the
____Cost_____ of the unsold goods owned by the compa
cost

Under the periodic system for inventory, the buyer ...

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