When Amazing Bikes Co. sells inventory to a customer with shipping terms FOB Destination, to record the shipping costsAmazing Bikes Co. should:

	a.	debit a contra-revenue account.
	b.	not record a journal entry; no entry is needed.
	c.	credit cost of goods sold.
	d.	debit an expense.
	e.	debit inventory.

. Which of the following statements regarding inventory costing methods is true?

	a.	The LIFO method assumes that the costs for the newest goods (the last ones in) are sold first and the older costs are left in ending inventory.
	b.	The FIFO method assumes that the costs for the newest goods (the last ones in) are sold first and the older costs are left in ending inventory.
	c.	During a period of rising prices, LIFO results in a higher income tax expense than does FIFO.
	d.	The weighted average method assumes that the costs for the newest goods (the last ones in) are sold first and the older costs are left in ending inventory.
	e.	In the U.S., if a company uses LIFO on the income tax return, it cannot use LIFO for financial reporting.

Beeler Company paid $1,250 cash on freight for inventory purchased from Taylor Inc. What is the journal entry Beeler Co. should record for the freight costs if the goods were shipped FOB Shipping Point?

	a.	Debit Transportation Out Expense, Credit Cost of Goods Sold
	b.	Debit Transportation Out Expense, Credit Cash
	c.	Debit Inventory, Credit Cash
	d.	Debit Inventory, Credit Transportation Revenue
	e.	No entry is needed by Beeler Co.