Chamberlain Company Buys Designer Clothing to Sell in Its Retail

Chamberlain Company buys designer clothing to sell in its retail stores.Since much of the merchandise comes from Dallas and Europe,Chamberlain Company must pay freight charges to get the merchandise shipped in.Which of the following statements is true?

A) Transportation-in,paid by Chamberlain Company,is added to the inventory account under the periodic system.
B) Transportation-in,paid by Chamberlain Company,is subtracted from purchases under the periodic system.
C) Freight charges are only paid by a buyer in a periodic system.
D) Transportation-in is added to net purchases to determine cost of goods purchased in a periodic system.