Response to the following questions:
1. Which of the following accounts are temporary accounts under a periodic system? (a) Merchandise Inventory; (b) Purchases; (c) Transportation-In.
2. Buyers negotiate purchase contracts with suppliers. What type of shipping terms should a buyer attempt to negotiate to minimize freight-in costs?
3. Do reported amounts of ending inventory and net income differ if the adjusting entry method of recording the change in inventory is used instead of the closing entry method?