The Beached Whale Company is a sporing goods retailer and uses a perpetual

inventory system. Which statement is correct?

Returns of merchandise by Beached Whale to a manufacturer are credited to

Inventory.

Freight paid to get merchandise to Beached Whale's store is debited to Freight

Expense.

A return of merchandise by one of Beached Whale's customers is credited to

Inventory.

Discounts taken by Beached Whale's customers are credited to Inventory.