On November 30, Janoch's Dog Kennel purchased $500 of merchandise on account from the Ganster Company. The goods were shipped F.O.B. shipping point. The freight charge of $40 was paid by Ganster Company and added to the invoice. The amount to record as payable is

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When goods are shipped F.O.B. shipping point, the buyer is responsible for the shipping charges. Although Ganster Company paid the freight charge, it was added to the invoice, making the total amount payable $540 ($500 for the merchandise plus $40 for the freight charge).

On November 30, Janoch's Dog Kennel Purchased $500 of Merchandise