1. What is perpetual inventory? 2. What is a merchandiser? 3. What is a wholesaler? 4. Explain FOB Shipping Point- 5. Explain FOB Destinatione 6. What is COGS? 7. Understand how terms are defined on an invoice e.g. 2/15 n60- S 5-6Merchandise purchase transactions-perpetual L03 Journalize each of the following transactions assuming a perpetual inventory system. May 1 Purchased $1.200 of merchandise inventory: terms 1/10. n/30. 14 Paid for the May 1 purchase. 15 Purchased $3.000 of merchandise inventory: terms 2/15. n/30. 30 Paid for the May 15 purchase, less the applicable discount. 1,200- de - Quick Study 5-6- May 14 Merchandise Inventory.... + + Accounts Payable.......... - To record purchase of merchandise; terms 1/10, 1/30.+ 1,200+ t 1,200- + + 14- Accounts Payable...... + Cash ............. - To record payment of credit purchase. t 1,20022 3,000 + 3,000++ 150 Merchandise Inventory........... Accounts Payable.... To record purchase of merchandise; terms 2/15, n30.+ 3,000+ + 30+ Accounts Payable..... Merchandise Inventory ............. Cash ........ .......... t t tt 60- ........ .......................... 2,940- To record payment of credit purchase within Pe discount period; $3,000 x 2%= $60 discount