13. X Co. purchased $2,000 of inventory on account. This inventory was sold for $3,000 cash. The amount of gross margin reported on the income statement and the amount of net cash inflow from operating activities reported on the statement of cash flows would be $3,000/$1,000 b. $1,000 / $3,000. c. $1,000/$-0-. d. $-0-/$1,000. a. 14. X Co. purchased $5,000 of inventory on account. Assuming that X Co. uses the perpetual inventory method, which of the following entries would it make to record this transaction? a. Debit inventory / credit accounts payable b. Debit accounts payable / credit purchases c. Debit accounts payable / credit inventory d. Debit purchases / credit accounts payable 15. High Ridge Merchandising Co. sold for $12,000 cash inventory that had cost $10,000. Assuming High Ridge uses the perpetual inventory method, the entries to record this transaction would a. increase assets by $2,000. b. decrease equity by $10,000. c. increase net income by $12,000. d. increases expenses by $2,000. a. 16. Identify the true statement. Transportation-out is a product cost. b. Sales allowances increase net income. c. Purchase discounts decrease book value of inventory under the perpetual inventory method. d. FOB shipping point designates the seller as the party responsible for freight costs