Testbank, Question 65 x Your answer is incorrect. Try again. Given a perpetual inventory system which one of the following statements is false? Freight costs incurred by the buyer are added to the Inventory account. Purchases of merchandise for sale are recorded in the Inventory account. A discount taken for early payment is credited to the Inventory account. A return of merchandise is credited to the Purchase Returns and Allowances account. LINK TO TEXT Testbank, Question 124 x. Your answer is incorrect. Try again. The gross profit margin is calculated by dividing gross profit by net sales. sales. operating expenses. cost of goods sold LINK TO TEXT Testbank, Question 123 Gross profit is also called gross margin. is expressed as a percentage of gross sales. the same as gross profit margin. a measure of the overall net income of a company. LINK TO TEXT