Using a perpetual inventory system, the buyer's journal entry to record the freight costs includes a:
A) Debit to Purchases
B) Debit to Inventory
C) Debit to Freight In
D) Debit to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, when a buyer incurs freight costs on merchandise, the following entry is made by the buyer:
Inventory XXX
$\quad $ $\quad $ $\quad $ Cash XXX

Using a Perpetual Inventory System, the Buyer's Journal Entry to Record