ACE Manufacturing pays a freight bill of $54 to United Trucking Company for merchandise purchased from Jackson Sales, terms FOB shipping point. When recording the payment with the perpetual inventory method, ACE would debit the $54 cost of the freight to

Question

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Under the perpetual inventory system, freight costs on purchases are added to the Inventory account when the terms are FOB shipping point, as the buyer is responsible for these costs.

ACE Manufacturing Pays a Freight Bill of $54 to United