Gools, Inc

Gools, Inc. buys designer clothing to sell in its retail stores. Since much of the merchandise comes from Europe, Gools, Inc. must pay freight charges. Which of the following statements must be true?

A) Transportation-in is added to the inventory account under the periodic system.
B) Transportation-in 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 included in the total cost of purchases used to determine cost of goods sold in a periodic system.