If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the
A) Merchandise Inventory account will be increased.
B) Merchandise Inventory account will not be affected.
C) seller will bear the freight cost.
D) carrier will bear the freight cost.

Question

Quizplus · Accepted Answer

Under FOB shipping point terms, the buyer is responsible for the freight costs, which are added to the Merchandise Inventory account in a perpetual inventory system.

If a Purchaser Using a Perpetual System Agrees to Freight