Feinstein Company Buys Designer Clothing to Sell in Its Retail

Multiple Choice

Feinstein Company buys designer clothing to sell in its retail stores.Since much of the merchandise comes from Dallas and Europe.Feinstein Company must pay freight charges to get the merchandise shipped in.Which statement is true?

A) Transportation-in,paid by Feinstein Company,is added to the inventory account under the periodic system.
B) Transportation-in,paid by Feinstein Company,is subtracted from purchases under the periodic system.
C) Freight charges are only paid by a buyer in a periodic system.
D) Transportation-in is added to net purchases to determine cost of goods purchased in a periodic system.