Questions 4,5,6,7

4. Which statement is TRUE regarding goods in Transit? a. Merchandise shipping FOB destination is included in the buyer's inventory during shipping b. Rights and risks of ownership have transferred to the buyer if merchandise shipped FOB destination c. If the seller sends merchandise shipped via FOB shipping, the buyer includes these goods in inventory d. If ownership has passed to purchaser, the seller paid the delivery costs 5. Jahcanta sold a delivery van which originally cost $24,500. The accumulated depreciation on the van was $13,650 at the date it was sold. Sale proceeds of $7,500 were received. What is the profit or loss on the disposal of the van? a. loss of $3,350 b. a loss of $6,150 c. a loss of $17,000 d. a profit of $3,350 6. Which financial statement shows whether the business earned a profit or loss? a. Balance Sheet b. Statement of Owner's Equity C. Income Statement d. Statement of Cash Flows 7. A retailer purchased $2000 of goods from a wholesaler on the following terms: 25 percent trade discount, 10 percent cash discount is the invoice is paid within 20 days. The retailer paid the invoice 18 days after receipt. How much should the retailer pay? a. $1,300 b. $1,350 c. $1,500 d. $1,800