5. LoCo, which uses the periodic method, purchases merchandise on account for $56,000, F.O.B. shipping point. Freight charges are $900 C.0.D. LoCo should record these purchases as . . . a. Purchases 56,000 Accounts Payable 55,100 Cash 900 b. Purchases 56,900 Accounts Payable 56,000 Cash 900 c. Purchases 56,000 Freight-In 900 Accounts Payable 56,000 Cash 900 d. Purchases 55,100 Freight-In 900 Accounts Payable 55,100 Cash 900 6. PiCo uses the perpetual method. On February 17, PiCo sells $30,000 in merchandise on account that cost $10,000. On February 23, 10% of these goods are returned. Prepare the entry that PiCo makes on February 23 to record the sales return. a. Sales Returns 3,000 Accounts Receivable 3,000 b. Sales Returns 1,000 Gross Profit 2,000 Accounts Receivable 3,000 . Sales Returns 3,000 Accounts Receivable 3,000 Inventory 1,000 Cost of Goods Sold 1,000 d. Sales Returns 3,000 Accounts Receivable 3,000 Inventory 1,000 Purchase Returns 1,000