In a perpetual inventory system,paying transportation charges on goods purchased FOB shipping point would have which of the following effects?
A)Decrease Operating Expenses
B)Increase Selling,General,and Administrative Expenses
C)Decrease Cost of Goods Sold
D)Increase Inventory

Question

Quizplus · Accepted Answer

Payment of the transportation charges would be debited to Inventory (assets increase)and credited to Cash (assets decrease).

In a Perpetual Inventory System,paying Transportation Charges on Goods Purchased