True/False - Identify whether each statement is true or false. 1. A company's cost of goods sold for a period should be the same whether the company used a perpetual inventory system or a periodic inventory system. 2. Under a periodic inventory system, the cost of goods sold and ending inventory are continuously reported. 3. Goods out on consignment should be included in the inventory of the consignor. 4. Purchases is a temporary account reported on the Income Statement as an operating expense. 5. When journalizing transactions using a periodic inventory system, a sale of merchandise does not require any recording of the cost of goods sold. 6. The income statement for a merchandising company using a periodic inventory system contains less detail for the cost of goods sold. 7. The Sales Returns and Allowances account is classified as an expense account. arce: Accounting Principles, Second Canadian Ed. Weygandt, Kieso, Kimmel, \& Trenholm