full disclosure principle Question 11 2 pts May Company buys designer clothing to sell in its retail stores. Since much of the merchandise comes from New York and Europe, May Company must pay freight charges to get the merchandise shipped in. Which statement is true? Transportation-in, paid by May Company, is subtracted from purchases under the periodic system. Transportation-in is added to net purchases to determine cost of goods purchased in a periodic system. Transportation-in, paid by May Company, is added to the inventory account under the periodic system. Freight charges are only paid by a buyer in a periodic system