Question 7 (1 point) When using the weighted average cost formula with a periodic inventory system O a new unit cost is calculated each time a sale is made. a new unit cost is calculated each time a purchase is made. a weighted average cost is calculated at year end. a new unit cost is calculated both when a sale is made and when a purchase is made. Question 8 (2 points) Ending inventory at the end of year one was mistakenly overstated (too high). Presuming the error went uncorrected into year two, which of the following is correct: Net income from year two would be understated. Cost of Goods Sold in year one would be overstated. Cost of Goods Sold in year two would be understated. Retained earnings at the end of year two would be overstated. Question 9 (1 point) Under the lower of cost and net realizable value basis for inventory, the adjusting entry to record a decline in net realizable value below cost includes a credit to the Cost of Goods Sold account. credit to the Sales account. debit to the Inventory account debit to the Cost of Goods Sold account