Multiple Choice (4 Marks) The term merchandise inventory means a. merchandise on hand. b. merchandise sold. c. merchandise bought. d. a fixed asset. e. None of the above. Beginning inventory plus purchases minus ending inventory equals a. cost of goods available for sale. b. cost of goods sold. C. gross income. d. net purchases. e. None of the above. Special charges imposed by the government on certain goods imported from a foreign country are known as a. duties. b. cross-border taxes. c. freight-in. d. delivery expenses. e. None of the above. Sales returns are always a. credited to the Sales Returns and Allowances account. b. debited to the Sales Returns and Allowances account. c. debited to the Sales account. d. credited to the Sales account. e. Either b or c