Asked by Vansh Arora on Jun 19, 2024
Verified
Freight costs paid by a seller on merchandise sold to customers will cause an increase
A) in the selling expense of the buyer.
B) in operating expenses for the seller.
C) to the cost of goods sold of the seller.
D) to a contra-revenue account of the seller.
Freight Costs
Expenses incurred by a company to transport goods from one location to another, often included in the cost of sales or inventory.
Selling Expense
Costs incurred directly in the sale of a product or service, including advertising, sales commissions, and store upkeep.
Merchandise Sold
The total goods that have been sold by a company, typically within a specific period, contributing to its revenue.
- Understand the handling of freight expenses and their effects on the accounting records of both seller and buyer.
Verified Answer
Learning Objectives
- Understand the handling of freight expenses and their effects on the accounting records of both seller and buyer.
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