I. 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 journal is to be used for purchases of merchandise on account. 2. Special journals are journals that record transactions of the same nature. 3. Totals in the subsidiary ledger must always be in agreement with the balances of the controling account. 4. The items entered in the cash column of cash receipts journal do not come ony from cash sales. 5. The design of special journal is uniform in all types of industry. 6. The use of special journal saves time in journalizing and posting. 7. The cash payment journal records all cash received by the company from whatever sources. 8. The cash receipts journal 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, returned and on hand