BSP Corporation purchased inventory from RSR Corporation on account, $1,000.BSP also paid $100 freight to reimburse RSR for its payment to the common carrier that transported the merchandise.The $100 freight charge is likely to be found on:
A)The bill of lading.
B)RSR Corporation's invoice.
C)Both the bill of lading and RSR Corporation's invoice.
D)Either the bill of lading or RSR Corporation's invoice, but not both.

Question

Quizplus · Accepted Answer

The $100 freight charge is likely to be found on both the bill of lading (as it pertains to the transportation of the merchandise) and RSR Corporation's invoice (as they charged BSP for the reimbursement).

BSP Corporation Purchased Inventory from RSR Corporation on Account, $1,000