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Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 7. If a firm's beginning inventory is $35,000, purchases are $160,000, and the cost of goods sold is $150,000 what is its ending inventory? $45,000 b. $130,000 c. $15,000 d. $165,000 On which financial statement would you look to find the total cost of goods sold? a. b. 8. Statement of stockholders' equity Statement of cash flows Income statement Balance sheet e.. 9. Using a perpetual inventory system, the journal entry, on the purchaser's books (not the seller), to re return of merchandise purchased on account includes a: a. Credit to Accounts Payable b. Credit to Inventory c. Credit to Sales Credit to Cost of Goods Sold d. When merchandise that was sold on account is returned, using the perpetual inventory system which are affected in the books of the seller? a. Sales returns, accounts receivable, purchases, and inventory b. Sales returns, accounts receivable, purchases, and cost of goods sold c. Cash, accounts receivable, cost of goods sold, and sales returns 10. d. Sales returns, accounts receivable, inventory, and cost of goods sold