4) Roadway Company purchases inventory from Fedway Company with the shipping terms FOB destination. This means that: A) Roadway Company owns the goods while they are in transit. B) Legal title passes to Roadway Company when the goods leave Fedway's shipping dock. C) Roadway Company will include the goods in their inventory as soon as they leave Fedway's shipping dock. D) Fedway Company will count the inventory as an asset until Roadway receives the goods. 5) How do purchase returns and allowances and purchase discounts affect gross purchases? A) Both are subtracted from purchases. B) Purchase returns and allowances are subtracted from purchases; purchase discounts are added to purchases. C) Purchase returns and allowances are added to purchases; purchase discounts are subtracted from purchases. D) Both are added to purchases