1. A company purchases inventory at a cost of $11,000. Shipping terms are FOB shipping...
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1. A company purchases inventory at a cost of $11,000. Shipping terms are FOB shipping point. Assume that the purchaser pays the freight invoice of $400 upon arrive of the items. The company uses the periodic inventory method. To record the payment for shipping, the company will ... A. Debit Purchases for $400 B. Credit Transportation-in for $400 C. Debit Merchandise Inventory for $600 D. Credit Freight-out for $600 None of the above E. 2. A company purchases merchandise inventory for $4,000 on account. Assume that the company uses the perpetual inventory method. To record the purchase, the company will ... A. Debit Accounts Payable for $4,000 B. Debit Cost of Goods Sold for $4,000 C. Debit Purchases for $4,000 D. Debit Merchandise Inventory for $4,000 E. None of the above 3. A company sells an inventory item for $1,000 on account. The item sold had a cost of $650. The company uses the periodic inventory method. To record the event the company will ... A. Debit Cost of Goods Sold for $650 B. Credit Accounts Receivable for $1,000 C. Credit Merchandise Inventory for $650 D. Credit Sales Revenue for $350 E. None of the above
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