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QUESTIONS Under the perpetual inventory system, purchase discounts taken by the buyer would be A credited to Cost of Goods Sold B. debited to Cost of Goods Sold O c credited to Merchandise Inventory 0 D. debited to Merchandise Inventory QUESTION 1 Operating expenses include O A. loss on sale of plant asset B.cost of goods sold, selling expenses, and administrative expenses C. cost of goods sold D.expenses that occur in an entity's major line of business QUESTION 4 Which of the following line items will appear on the income statement of a merchandiser but not of a service company? A. Salaries Expense B. Supplies Inventory OC. Cost of Goods Sold D. Depreciation Expense