S1-The worksheet of a merchandising entity uses the perpetual inventory system will not have a Transportation In account.

S2-In the worksheet, the Ending Inventory amount will appear in the Income Statement credit column and the Balance Sheet debit column.

Both statements are true

Both statements are false

One statement is true, the other statement is false

S1-The determination of Net Purchases would include addition of Transportation Out.

S2-When preparing closing entries under the periodic inventory system, Sales and Purchases Returns and Allowances are both closed in the same entry.

Both statements are true

Both statements are false

One statement is true, the other statement is false

S1-In the income statement, Operating Expenses are classified as Distribution Costs, Administrative Expenses and Other Operating Expenses.

S2-Cost of Goods Sold is a major expense of a merchandising business.

Both statements are true

Both statements are false

One statement is true, the other statement is false