Fact Pattern A Questions #8 through #12: Purchaser is acquiring $20,000 worth of inventory from Seller on "account" (i.e., with credit). The cost to the Seller associated with the goods purchased by Purchaser is $9,000. Purchaser is in Orlando; Seller is in Salt Lake City.

8. Under the perpetual method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern A, above, from the Seller's perspective. The Seller will: a. Credit Sales Revenue for $20,000. b. Credit Prepaid Sales Revenue for $20,000. c. Debit COGS for $20,000. d. Debit Account Payable for $20,000. e. Credit Sales Revenue for $9,000.

9. Under the perpetual method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern A, above, from the Seller's perspective. The Seller will: a. Debit COGS for $20,000. b. Credit Inventory for $9,000. c. Credit Purchases for $9,000. d. Debit Sales Revenue for $20,000. e. Credit Inventory for $20,000.

10. Under the periodic method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern A, above, from the Purchaser's perspective. The Purchaser will: a. Debit Inventory for $20,000. b. Credit cash for $20,000. c. Debit Purchases for $20,000. d. Credit Inventory for $20,000.

11. Under the periodic method of accounting for inventories, consider the journal entry for a payment for freight charges in the amount of $600 if the freight charges are paid on account (i.e., by credit) and if the shipping designation is FOB Orlando. The person paying the freight will: a. Debit Inventory for $600. b. Debit Freight Expense for $600. c. Credit cash for $600. d. Debit Freight-In for $600. e. Credit Freight-In for $600.

12. Regarding the journal entry you considered in Question #11, above, from whose perspective did you consider the journal (i.e., from the Purchasers perspective or from the Sellers perspective)? a. Seller b. Purchaser