Gools Inc.buys designer clothing to sell in its retail stores.Since much of the merchandise comes from Europe,the company must pay freight charges.Under the periodic system,which of the following occurs?
A) Transportation-in is added to the inventory account.
B) Transportation-in is subtracted from purchases.
C) Freight charges are paid by the buyer.
D) Transportation-in is included in the total cost of purchases used to determine cost of goods sold.
Correct Answer:
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