1a) Rodriguez Company purchased merchandise from Emmett Company with freight terms of

FOB shipping point. The freight costs will be paid by the

a. shipping company.

b. buyer (Rodriguez Company)

c. seller (Emmett Company)

d. buyer and the seller.

b) Gee Company purchased merchandise inventory with an invoice price of $7,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Gee Company pays within the

discount period?

a.	$6,300
b.	$6,440
c.	$6,860
d.	$7,000

C) A credit sale of $3,600 is made on July 15, terms 2/10, n/30, on which a return of $100 is

granted on July 18. What amount is received as payment in full on July 24?

a.	$3,600
b.	$3,528
c.	$3,500
d	$3,430

D) The Sales Returns and Allowances account is classified as a(n)

a. asset account.

b. contra asset account.

c. expense account.

d. contra revenue account.