really stuck

Chapter 5 Test The TRUE/FALSE Write "T" If True or "F" If False. 1) The periodic inventory system is normally used for relatively inexpensive goods. 2) When a company uses the perpetual inventory method, the inventory account should stay current at all times. 3) The accounting cycle for a merchandising company begins with the purchase of inventory. 4) The periodic inventory system keeps a running record of inventory and cost of goods sold. 5) Credit terms of 2/10, 1/30 mean that the purchaser may deduct 2 percent if the invoice is paid within 10 days, with the full amount due in 30 days if the early payment option is NOT exercised. 6) Freight in should be added to the inventory account if the company uses the perpetual inventory method. 7) Purchase returns and allowances decrease the net amount of cash that will be paid for the inventory, and so they should reduce the cost of the inventory as recorded in the Inventory account 8) When a company is purchasing inventory, and there are either returns or allowances for damaged goods, those amounts are recorded as a debit to the Sales returns and allowances account 9) When a company is purchasing inventory, and pays early to take advantage of the purchase discount offered by the vendor, that amount is debited to the Inventory account. 10) A company receives an invoice that indicates that title to the merchandise will pass to the company when they receive the goods. This situation is described as FOB destination. 11) Credit terms of 2/10, 1/30 indicate that a 2% discount may be taken if the invoice is paid within 10 days, but the total invoice amount is due if paid on the 11th through the 30th day after the invoice date. True 12) Freight out is an addition to the Inventory account if the company uses the perpetual inventory method. False 13) A sales return is recorded with a credit to Inventory. 14) A sales allowance is recorded with a credit to Accounts receivable. 15) A company uses the perpetual inventory method. To record a sale of merchandise on account will require an entry to record revenue and an entry to record cost of goods sold