D) credit to Cash $1,100 5. Merchandise totalling $20,000 was purchased February 2 with terms of 2/10, n/30 Returns of S1,000 were made on February 10. What is the discount if paid on February 12? A) $380 B) $400 C) $420 D) $20 6. If goods are shipped FOB shipping point, the entry on the buyers books using a periodic inventory system would include a: A) debit to Shipping Expense B) debit to Freight in C) debit to Purchases D) credit to Purchases 7. Under the perpetual inventory system, which of the following accounts would not be used? A) Cost of Goods Sold B) Merchandise Inventory C) Sales D) Purchases 8. Under the perpetual inventory system, the entry to record a purchase return would include an entry to which account? A) Merchandise Inventory B) Purchases Returns and Allowances C) Accounts Receivable D) Sales