1- The following entry is taken from the journal of a merchandising company:

Transportation-out	400
Cash		400

This entry results in

an increase in Cost of Goods Sold.an increase in inventory.an increase in operating expenses.a decrease in gross margin.

2- The Wilson Company purchased $29,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,200 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system.

Total debits to the inventory account would be $29,000.

Total debits to the inventory account would be $31,200.Total debits to the inventory account would be $31,200.

Transportation-in would be debited for $2,200.