What the company merchandise inventory for jake market

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Reference no: EM133007421

Problem 1: Freight costs paid by a seller on merchandise sold to customers will cause an increase

A) to the cost of goods sold of the seller.
B) to a contra-revenue account of the seller.
C) in the selling expense of the buyer.
D) in operating expenses for the seller.

Problem 2: Jake's Market recorded the following events involving a recent purchase of merchandise: Received goods for P20,000, terms 2/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory

A) increased by P19,306.
B) increased by P19,308.
C) increased by P19,700.
D) increased by P19,208.

Reference no: EM133007421

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