Asked by Hannah Baranda on May 12, 2024
Verified
Under the perpetual system cash freight costs incurred by the buyer for the transporting of goods is recorded in
A) Freight Expense.
B) Freight - In.
C) Inventory. d Freight - Out.
Freight Costs
Freight Costs entail the charges incurred for the transportation of goods by land, sea, or air.
Perpetual System
A system for managing inventory that instantly logs sales or purchases via computerized point-of-sale systems and enterprise asset management software.
Inventory
A company's complete stock of items and materials, kept for the aim of either resale or use in manufacturing processes.
- Understand the accounting treatment of freight costs in transactions and their impact on Inventory accounts.
Verified Answer
Learning Objectives
- Understand the accounting treatment of freight costs in transactions and their impact on Inventory accounts.
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