Which of the following costs are included in the Merchandise Inventory account?

Group of answer choices

Cost incurred to buy goods held for resale

Cost of shipping goods to the store

Cost of making goods ready for sale

Cost of office supplies

A, B, and C are all accounted for in the Merchandise Inventory account

When sellers require payment within 10 days after the end of the month of the invoice date, which of the following would be shown as the credit terms?

Group of answer choices

n/10 EOM

1/20 net 30

2/10 net 30

net 30

None of the above

A retailer purchased $3,000 of merchandise on credit. The credit terms were 2/10, n/30, FOB destination. The freight costs were $65. What was the journal entry to record the purchase, assuming a perpetual inventory system?

Group of answer choices

Merchandise Inventory, debit, $3,000; Accounts Payable, credit, $3,000

Merchandise Inventory, debit, $3,065; Accounts Payable, credit, $3,065

Merchandise Inventory, debit, $3,000; Freight-In, debit, $65; Accounts Payable, credit, $3,065

Merchandise Inventory, debit, $2,935; Freight-In, debit, $65; Accounts Payable, credit, $3,000

None of the above

Which of the following statements is true with respect to the cost of goods sold account that a merchandiser using a perpetual inventory system would use?

Group of answer choices

Cost of goods sold is an asset

Cost of goods sold would appear on the balance sheet

Cost of goods sold has a normal credit balance

All of the above

None of the above

An item of merchandise was sold with an invoice price of $400 and credit terms of 2/10, n/30. The entry to record the sale would include a credit to Sales of what amount?

Group of answer choices

$400

$396

$408

$392

$404