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:

Question

Quizplus · Accepted Answer

The $100 freight charge should be listed both on the bill of lading and on RSR Corporation's invoice. The bill of lading would serve as proof that the merchandise was shipped and that RSR paid for the transportation, while RSR's invoice would show BSP the total amount owed for both the inventory and the freight reimbursement.

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