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When the market is lower than cost, and the indirect method of recording the write-down is used, what account is credited?

a) a loss account b) merchandise inventory c) allowance to reduce inventory to market d) cost of goods sold

Which element in the projected income statement CANNOT be forecasted using the percentage-of-sales method?

A) Cost of goods sold B) Selling expense C) Administrative expense D) Interest expense E) All of these items can be forecasted using the percentage-of-sales method.