If a purchaser using a perpetual inventory system pays the transportation costs, then the
A) Inventory account is increased.
B) Inventory account is not affected.
C) Freight-Out account is increased.
D) Delivery Expense account is increased.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, transportation costs paid by the purchaser are added to the Inventory account, as they are considered part of the cost of acquiring the inventory.

If a Purchaser Using a Perpetual Inventory System Pays the Transportation