The freight paid on goods purchased F.O.B.shipping point was debited to the Freight Expense account.This error would cause:

Name: The freight paid on goods purchased F.O.B.shipping point was debited to the Freight Expense account.This error would cause:
Brand: Quizplus
Rating: 4.8 (59 reviews)

Question

Quizplus · Accepted Answer

When freight is paid on goods purchased F.O.B. shipping point, it should be added to the cost of inventory, not expensed. Debiting Freight Expense instead of Inventory understates assets (inventory) at period end.

The Freight Paid on Goods Purchased F