12. Selling and administrative costs are product costs. TRUE FALSE terms of 2/10, n/30. y sold merchandise that it had purchased with a list price of $6,500 and subject to cost of good ming that Omega paid for the merchandise during the discount period, the cost of good sold for this transaction would be $6,370. TRUE FALSE 14. The income statement is not affected by a purchase of merchandise. TRUE FALSE 15. A physical count of the inventory can reveal the amount of inventory shrinkage the company has experienced from emplo TRUE FALSE 16. The entry to record the amount of inventory shrinkage affects both the balance sheet, and the income statement. TRUE FALSE