The following information was presented by the bookkeeper for Snap Retail (SR) for the month of November 2020. SR uses a perpetual inventory system. Date Business Event November 2 Purchased inventory from Willow Brook Co. for $52,000 under the credit terms of 2/10 n30, FOB shipping point. November 3 SR paid $25 cash for shipping of inventory purchased on November 2. SR opened the package from Willow Brook Co. and noted that half of the November 5 Inventory purchased ($26,000) on November 2nd was wrong. SR returned the merchandise and received a credit memo acknowledging the return November 8 Paid the balance due to Willow Brook Co. SR sold inventory to Edge Co., a local personal training company for $21,400 (cost November 19 $12,200) under credit terms 2/10 n45, FOB destination November 29 Received Edge Co.'s payment from the November 19th sale. Use the information above to answer the following questions by putting the letter for the best answer only and no need to write the journal entry to manage your time efficiently. FOR EXAMPLE, YOU CAN USE THE FOLLOWING STRUCTURE IN THE NASWER SPACE. 1.C:2.A & SO ON 1. November 2: The purchase entry would include a: A Credit Merchandise Inventory 552,000 B. Debit Cost of Goods Sold 552,000 C. Credit Sales 552,000 D. Credit Accounts Payable $52,000 2. November 3: The correct entry to record the shipping costs for the purchase of inventory is: A Debit Merchandise inventory, Credit Accounts Payable B. Debit Freight Expense, Credit Accounts Payable Debit Shipping Expense Credit Cash 2. November 3: The correct entry to record the shipping costs for the pu Time left 1:55:42 inventory is: A. Debit Merchandise Inventory, Credit Accounts Payable B. Debit Freight Expense, Credit Accounts Payable C. Debit Shipping Expense, Credit Cash D. Debit Merchandise Inventory, Credit Cash 3. November 5: The entry for the credit memo from Willow Brook Co. would include: A. Debit Cost of Goods Sold $26,000 B. Debit Cash $26,000 C. Debit Merchandise Inventory $26,000 D. Debit Accounts Payable $26,000 4. November 8: The entry for the payment to Willow Brook. would include: A Credit Accounts Payable $52,000 B. Credit Merchandise Inventory $520 C. Debit Accounts Payable $25,480 D. Credit Cash $26,000 5. November 19: The sales entry to Edge Co. would include: A. Credit Accounts Receivable 521,400 B. Credit Sales $21,400 C. Credit Cost of Goods Sold $12,200 D. Debit Merchandise Inventory $12,200 6. November 29: The entry for the collection from Edge Co. would include: A. Debit Cash $20,972 B. Credit Merchandise Inventory 5428 C. Credit Accounts Receivable $20,972 D. Debit Sales 5428
