1. Modified True or False. On the blank before each number, write True if the statement is correct, if it is False, change the underlined word/s to make the statement correct. 1. A sales joumal is to be used for purchases of merchandise on account. 2. Special joumals are joumals that record transactions of the same nature. 3. Totals in the subsidiary ledger must always be in agreement with the balances of the controlling account. 4. The items entered in the cash column of cash receipts journal do not come only from cash sales. 5. The design of special joumal is uniform in all types of industry. 6. The use of special joumal saves time in joumalizing and posting. 7. The cash payment journal records all cash received by the company from whatever sources. 8. The cash receipts joumal record all cash disbursed or paid for whatever purpose. 9. In periodic inventory system, inventory quantity is determined by counting the actual goods on hand. It is a system in which the inventory account is updated only at the end of the accounting period. 10. In perpetual inventory system maintains an accurate item-by-item record of inventory on hand at all times. It is a continuous detailed record of goods received, sold, retumed and on hand. II. Problem. Shown herein is a page from a special journal. Questions: 1. What kind of journal is this? 2. Give an explanation for transaction dated May 17 and May 18. 3. Explain the following: a. The numbers under the bottom lines. b. The check marks entered in the post reference columns. c. The check marks under the bottom line. 2011 17 Acy Ciragasm 18 inerdes Piarktev 20