8. SHORT ANSWERS 19 Marks) When the buyer pays the freight costs, which account would be debited in the entry to record the payment under a perpetual Inventory system? (1 mark) the normal operating cycle of a merchandising company longer or shorter than for a service company Briefly explain the main difference between their operating cycles (2 mars 3) Goods that were purchased FOB destination are still in transit when a physical Inventory is being done. Will the seller include these goods in their physical inventory count? Explain (2 mark) 4) Give a brief explanation of what an EFT is, and why a company may prefer EFT payments. (3 marks) 5) What is the purpose of recording estimated uncollectible accounts using the allowance method? (1 mark) Scanned with CamScanner