1.Faust Company uses the perpetual inventory method. Faust sold goods that cost $5,000 for $8,000. If the sale was made on account, the net effect of the sale will:

A)increase total assets by $8,000. B)decrease total assets by $5,000. C)increase total equity by $8,000. D) increase total assets by $3,000. 2.Indicate whether the following statement is true or false. (Assume perpetual inventory) When the freight-out cost is incurred, the balance in the cost of goods account increases. True of Flase