Assume that a perpetual inventory system is in use. Which of the following statements regarding the journal entries prepared is correct?

Multiple Choice

"Freight$-$out" or delivery costs associated with sales should be included in Cost of Goods Sold.

When a customer returns inventory, the seller debits Sales Returns & Allowances under a perpetual inventory system.

When a company grants an allowance to a customer, Inventory is credited when using a perpetual inventory system.

When a company receives payment from a customer for a sale, Cash is debited and Accounts Payable is credited.