Kate Company Uses a Perpetual Inventory System and Purchased Inventory $\quad$

Kate Company uses a perpetual inventory system and purchased inventory from Phoebe Company. The shipping costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges:
A) There is no entry on Kate's books for this transaction.
b. Freight Expense $\quad$$\quad$ 500
$\quad$ Cash $\quad$$\quad$ 500
c. Freight-Out $\quad$$\quad$ 500
$\quad$ Cash $\quad$$\quad$ 500
d. Inventory $\quad$$\quad$ 500
$\quad$ Cash $\quad$$\quad$ 500