The freight paid on goods purchased F.O.B.shipping point was debited to the Freight Expense account.The goods are not sold at period end.The company uses the perpetual inventory method.This error would cause:

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When freight paid on goods purchased F.O.B. shipping point is debited to the Freight Expense account, it implies that the cost of transportation is considered as an expense rather than a part of the cost of goods sold or inventory. This error would cause an understatement of the inventory and hence an understatement of the period-end assets.

The Freight Paid on Goods Purchased F