2. High Ridge Merchandising Co. sold for S12.000 cash inventory that had cost $10,000. Assume that High Ridge uses the perpetual inventory method. How this transaction would affect the records of High Ridge? Possible answers Increase assets by S Increases expenses byS. 3. Which of the following is not a period cost? a. Advertising cost. b Salary of the company president. Goods purchased for resale d Interest paid on a company