FUNDAMENTALS OF ACCTG T&P 1B Purchases of merchandise debited to Merchandise inventory –PERIODIC INVENTORY SYSTEM Cost of transporting goods from supplier to the buyer –FREIGHT IN Term for revenue of a merchandiser –SALES On March 1, 2017, Mr. A bought 10 units of cell phones with a listed price of P 10,000 each, less 2%, 4%, for resale. Terms of payment: 2/10, n/30. Assuming Mr. A paid on March 8, 2017, he will be paying –It is a business combining raw materials, labor and overhead to produce finished goods to sell. –MANUFACTURING _____-is the cost of the merchandise that the merchandiser has sold. - Cost of goods sold or cost of sales ______is a business involving buying goods and selling it in its original form. –MERCHANDISING In the books of seller, ____ is deducted from the invoice price when the buyer pays earlier or on the date/term stipulated. –SALES DISCOUNT The discount given by the supplier to a trader will be recorded in the latter's books as –PURCHASE DISCOUNT Following are selected purchase transactions of Mr. Cruz, a merchandiser, during April of the current year: April 8 Purchased merchandise from ABC Textile Corporation worth P 100,000, FOB Destination. Freight reported is P 15,000. Terms of payment: 2/10, n/30.