INVENTORIES

1. A

2. 2

3. Trade discount - binabawas if you buy bulk; wherein a list price is converted into a price a purchaser is actually charged

   • Cash discount - discount for paying earlier

4. FIFO - cost flow assumption that the first inventory sold is first inventory bought

• jus bc u haven’t received inventory doesn’t mean its not part of ur inventory

• freight paid by seller - FOB destination; goods in transit r owned by seller. magtratrasnfer lang ownership pag received by buyer

• pag ship out, di na satin yon, no matter what

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