matching Question and 1.2

Match the following The merchandise inventory account balance should equal ending inventory, at all times Freight cost to deliver goods to customers reported as an 1. Net sales operating expense A calculation of gross profit divided by net sales 2. Freight out A discount provided to encourage early payment 3. Subsidiary account Cost of goods purchased 4. Separate account maintained for each different product Purchase disc 5. Debits to Merchandise 6. Cost of goods sold Inventory Freight terms which require the seller to pay the freight Periodic inventory system 7. cost 8. Perpetual inventory system Sales less sales returns and allowances and sales 9. FOB destination discounts 10, Requires a physical count of goods on hand to calculate Gross Profit Margin 11. FOB shipping point cost of goods sold Deducted from net sales to calculate gross profit Freight terms which required the buyer to pay the freight cost Question 1 (1 point) A retailer's inventory cost should include freight-in on the merchandise purchased with terms FOB shipping point True . False Question 2 (1 point) Under the accrual basis of accounting, revenues are recognized in the accounting period in which Cash Is Received Revenues Are Earned