Match the following assertions with their associated description: (a) existence or occurrence, (b) completeness, (c) rights and obligations, (d) valuation or allocation, (e) presentation and disclosure. (lo.1) 1. the company has title to the inventory as of the balance sheet date. (c) rights and obligations2. inventory balances exist at the balance sheet date.(a) existence or occurrence3. inventory is properly classified on the balance sheet and disclosed in the notes to the financial statements. (e) presentation and disclosure4. inventory balances include all inventory transactions that have taken place during the period. (b) completeness5. the recorded balances reflect the true underlying economic value of those assets. (d) valuation or allocation

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.