Question: 1. Does the sender (maker) of a debit memorandum record a debit or a credit in the recipient's account? What entry (debit or credit) does the recipient record?
2. What is the difference between the single-step and multiplestep income statement formats?
3. The cost of merchandise inventory includes which of the following:
a. Costs incurred to buy the goods.
b. Costs incurred to ship the goods to the store(s).
c. Costs incurred to make the goods ready for sale.
d. Both a and b.
e. a, b, and c.