1. In computing the cost of merchandise sold, does each of the following items increase or decrease that cost? (a) freight, (b) beginning merchandise inventory, (c) purchases discounts, (d) ending merchandise inventory.
2. What is the meaning of (a) 2/10, n/30; (b) n/90; (c) n/eom?
3. Office Outfitters Inc., which uses a perpetual inventory system, experienced a normal inventory shrinkage of $3,750. What accounts would be increased and decreased to record the adjustment for the inventory shrinkage at the end of the accounting period?