103. Indicate whether each of the following statements is true or false. (Assume a perpetual inventory system)
_____ a) Freight-in cost is a part of selling and administrative costs.
_____ b) When transportation-out cost is incurred, the balance in the inventory account increases.
_____ c) When transportation-in cost is incurred, the balance in the inventory account increases.
_____ d) When the transportation-out cost is incurred, the balance in the cost of goods account increases.
_____ e. Transportation-out cost is a part of selling and administrative costs.
104. Indicate whether each of the following statements is true or false.
_____ a) The freight terms FOB shipping point increase the cost of inventory to the buyer.
_____ b) The term FOB means that goods are shipped free of charge to buyer and seller.
_____ c) FOB shipping point means that purchaser's responsibility ends at shipping point.
_____ d) F.O.B. destination means that seller's responsibility ends at destination.
_____ e) When the seller of merchandise records freight under the terms FOB shipping point, the seller records an expense.