The Wilson Company purchased $42,000 of merchandise from the Poole Wholesale Company. Wilson also paid $3,500 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system.

Multiple Choice

• Transportation-in would be increased by $3,500.
• Totalincreases to the inventory account would be $42,000.
• Total increases to the inventory account would be $45,500.
• Totalincreases to the inventory account would be $3,500.