Freight in is the amount paid by the company to deliver merchandise sold to a customer.

In a perpetual inventory system, merchandise returned to vendors reduces the inventory account of the company returning the merchandise.

On a single-step income statement, the total of all expenses is deducted from the total of all revenues.

If merchandise sold on account is returned to the seller, the seller acknowledges the return by issuing a

Even if borrowing is needed to pay within the discount period, it is generally advantageous for the buyer to take advantage of purchases discounts.

In a periodic inventory system, the cost of merchandise purchased includes the cost of freight in.

The fees associated with credit card sales are periodically recorded as expenses.

Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.

What type of company would normally offer trade discounts to its customers?

Most companies will not take a purchases discount, because 1% or 2% discounts are insignificant.