1. Identify the accounting items for which adjustments are made to the invoice price of goods when determining the net cost of purchases.
2. Describe the difference between F.O.B. shipping point and F.O.B. destination.
3. Why do sales transactions under a perpetual inventory system require two journal entries?
4. Why do the four inventory costing methods produce different amounts for the cost of ending inventory and cost of goods sold when purchase prices are changing?