At the time a firm adjusts Merchandise Inventory, the Income Summary account a. contains the last fiscal period's adjusting entry for Merchandise Inventory. Ob. contains an adjusting entry for expired prepaid insurance. c. contains an adjusting entry for unearned revenue. d. contains two closing entries. e. has no balance. Net purchases is equal to a. Purchases minus Freight In plus Purchases Returns and Allowances. b. Purchases plus Purchases Returns and Allowances plus Purchases Discounts. c. Purchases plus Freight In minus Purchases Discounts. d. Purchases minus Purchases Returns and Allowances plus Purchases Discounts. Oe. Purchases minus Purchases Returns and Allowances minus Purchases Discounts. The agreement between a seller and a buyer about payment on a purchase is called a. Credit Agreement O b. Credit Terms O c. Purchase Agreement Od. Credit Period In the Adjustments columns of the work sheet, the credit to the Merchandise Inventory account (using the periodic system) represents a. ending inventory. b. the difference between the beginning and the ending inventory. c. beginning inventory. d. net income. Oe. the balance owed to creditors for inventory