For Each Item Below, Indicate Whether a Debit or Credit $\quad$

question 171

Short Answer

For each item below, indicate whether a debit or credit applies. 1. Increase in Accounts Payable $\quad$$\quad$$\quad$$\quad$ _____
2. Increase in Accounts Receivable $\quad$$\quad$$\quad$ _____
3. Increase in Retained Earnings $\quad$$\quad$$\quad$$\quad$ _____
4. Decrease in Unearned Service Revenue $\quad$ _____
5. Decrease in Interest Payable $\quad$$\quad$$\quad$$\quad$$\quad$ _____

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Definitions:

Transportation Cost

The total expenses incurred in the process of moving goods from one location to another, including freight charges, fuel costs, and maintenance.

Inventory Cost

The total expense incurred in storing and maintaining goods that are kept for sale, including costs related to warehousing, depreciation, obsolescence, and shrinkage.

Facility Cost

The total expense incurred from operating a building or service location, including maintenance, utilities, rent, and other associated costs.

Reorder Interval

The time between placing orders for inventory replenishment to ensure stock levels remain adequate.