1) Which of the following accounts usually has a debit balance?

a. Freight-In

b. Allowance for Doubtful Accounts

c. Sales tax Payable

d. Purchase Discounts

2) If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

a. FOB destination

b. FOB n/30

c. FOB seller

d. FOB shipping point

3) Merchandise with an invoice price of $5,000 is purchased on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $200. What is the cost of the merchandise if paid on September 12, assuming the discount is taken?

a. $5,096

b. $4,900

c. $5,200

d. $4,704