Using a periodic inventory system, the cost of freight in
A) increases the cost of merchandise inventory.
B) is debited to the Purchases account
C) is reflected in an expense account called Freight In
D) reflects the cost of delivering goods to customers.

Question

Quizplus · Accepted Answer

In a periodic inventory system, freight-in costs are recorded in a separate expense account called "Freight In," which is added to the cost of purchases to determine the total cost of goods available for sale.

Using a Periodic Inventory System, the Cost of Freight in