On March 30, Bailey's Dog Bakery purchased $1,000 of merchandise on account from the Williams Company. The goods were shipped F.O.B. shipping point. The freight charge of $80 was paid by Williams Company and added to the invoice. The amount to record in the Accounts Payable account is

Question

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The invoice amount of $1,000 plus the freight charge of $80 equals a total amount of $1,080. Therefore, the amount to record in the Accounts Payable account is $1,080.

On March 30, Bailey's Dog Bakery Purchased $1,000 of Merchandise