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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.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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