1. Returned merchandise paid for within the discount period for cash. The perpetual inventory system is in use. This return will be recorded with

a) a debit to liability and credit to purchase

b) a debit to an asset and a credit to an asset

c) a debit to an expense and a credit to liability

d)a debit to an expense and credit to an asset

2. Discounts are taken on

a) shipping expense

b) merchandise inventory return

c)merchandise inventory after returns are taken out

d)both shipping expense and merchandise inventory after returns are taken out are correct

3. returned merchandise for credit under the perpetual inventory method. this will be recorded with.

a) a debit to accounts payable and a credit to sale return and allowances

b) a debit to sales return and allowances and a credit to merchandise inventory

c) a credit to accounts payable and a debit to merchandise inventory

d)a debit to accounts payable and a credit to merchandise inventory

4. the account freight-in accumulates the shipping cost to the seller. true or false?