Open with 21. The Freight-in account a) Increases the cost of merchandise purchased. b) is contra to the Purchases account. c) Is a permanent account. d) Has a normal credit balance. 22. West Company has the following account balances: Purchases $38,000 Sales Returns and Allowances 4,000. Purchase Discounts 2,500 Freight-in 1,875 Delivery Expense 2,500 The cost of goods purchased for the period is a) $40,500 b) $37,375 c) $39,875. d) $35,875. 23. Baden Shoe Store has a beginning merchandise inventory of $15,000. During the period, purchases were $80,000; purchase returns, $2,000; and freight-ins $5,000. A physical count of inventory at the end of the period revealed that $10,000 was still on hand. The cost of the goods available for sale was a) $92,000 b) $88,000 c) $98,000 d) $102,000 24. Cost of goods sold is computed from the following equation; a) Beginning inventory - cost of good purchased + ending inventory. b) Sales - cost of goods purchased + beginning inventory ending inventory. c) Sales - gross profit - ending inventory + beginning inventory. d) Beginning inventory + cost of goods purchased - ending inventory