7. Betts & Bogart, Inc. sold inventory for $78,000 cash that had cost them $58,000. Assuming the company uses the perpetual inventory method, the net effect of all journal entries required to properly record this sale would: a. decrease assets by $20,000. b. decrease net income by $20,000. c. increase retained earnings by $20,000. d. increase expenses by $20,000. 8. If land is sold for more than the company paid for it, the resulting "gain on sale" would: a. Decrease Equity b. Increase Liabilities c. Increase Assets d. None of the above would occur. 9. Ingol & Worst, Inc. purchased inventory on account from a supplier. The goods purchased totaled $1,221 and freight costs amounted to $57. The terms of the sale included reference to "FOB Destination". How would the freight charges be recorded in the buyer's accounting records assuming use of the perpetual inventory method? a. Debit Transportation-In, credit accounts payable b. Debit Transportation-out, credit accounts payable c. Debit inventory and credit cash d. No Freight charges would be recorded by the buyer