Under the perpetual inventory system, purchase discounts are: Select one: a. debited to Merchandise Inventory. O b. credited to Merchandise Inventory. O c. debited to Cost of goods sold. d. credited to Cost of goods sold. On July 1, a company paid $50,000 for one-year's fire insurance, covering the next 12 months. The journal entry to record this cash payment would include a: Select one: O a. credit to Accounts Payable. o b. debit to Prepaid Expenses. c. credit to Unearned Revenue. d. debit to Note Payable. Mehta Enterprises is in the year-end closing process. Which of the following accounts would Mehta NOT close? Select one: a. Income Summary. O b. Salaries Expense. c. Retained Earnings. d. Sales Revenue