Reference no: EM132772975

Problem 1: Procession Groceries, a famous grocery merchandiser, purchased goods and paid transportation to bring them to the company warehouse. The transportation cost is known as:

A) freight out.

B) selling expense

C) freight in.

D) cost of goods sold.

Problem 2: What does "2/10" mean, with respect to "credit terms of 2/10, n/30"?

A) A discount of 2% will be allowed if invoice is paid within 10 days from the date of the invoice .

B) An interest of 2% will be charged if invoice is paid after 10 days from the date of invoice.

C) A discount of 10% will be allowed if invoice is paid within 2 days from the date of invoice.

D) An interest of 10% will be charged if invoice is paid after 2 days.