1. When using a periodic inventory system, which statement concening the computation of cost of goods sold is correct? A) The amount of ending inventory is determined on the last day of the accounting B) C) D) period. Cost of goods available for sale includes net purchases plus the ending inventory Purchases represent cash paid for purchases during the accounting period. Freight-in is ignored. 2. When using the periodic inventory system, which of the following is not a step irn determining cost of goods purchased? A) Add freight-in B) Subtract purchase returns and allowances C) Subtract cost of ending inventory D) All of these are necessary steps 3. At the beginning of the year, Uptown Athletic had an inventory of $600,000. During the year, the company purchased goods costing $2,250,000. If Uptown Athletic reported ending inventory of $750,000 and sales of $3,000,000, their cost of goods sold and gross profit rate would be A) $1,500,000 and 70%. B) $2,100,000 and 30%. C) $1,500,000 and 30%. D) $2,100,000 and 70%. 4. During the year, Megan's Pet Shop's merchandise inventory decreased by $80,000. If the company's cost of goods sold for the year was $1,200,000, purchases would have been A) $1,280,000. B) $1,120,000. C) $1,040,000. D) Unable to determine