QUESTION 3 Fill in the blanks Each time End of accounting period Sales DiscountSales Revenue Purchase Net Profit FOB Destination Business time Purchase ReturnOperating Expense 2/10, n/30 Revenue Periodic inventory ystem FOB ShippingGross Profft Point 1. There are two ways to account for inventory in company, either using perpetual inventory system or In perpetual system, the company calculates the cost of goods sold For periodic system, the cost of goods sold is determined at the 2. 3. 4. a sale occurs. means the return goods for credit if the purchase was made on credit or for a cash refund if the purchase was for cash. 5. The means discount if paid within 10 days, otherwise net amount due within 30 days. is the freight terms that require the buyer to pay the freight cost. is the freight terms that require the seller to pay the freight cost. net sales less cost of goods sold. 8. In determining the are the costs associated with a company's main operating activities and which are reported on its income statement 10. A is a reduction in the price of a product or sevice that is offered by the seller in exchange for early payment by the buyer