The Freight-in account
A) increases the cost of merchandise purchased.
B) is contra to the Purchases account.
C) is a permanent account.
D) has a normal credit balance.

Question

Quizplus · Accepted Answer

The Freight-in account is used to record the cost of shipping and transportation to bring merchandise purchased to the buyer's location. This increases the cost of the merchandise purchased and is therefore added to the total cost of the goods. Therefore, the Freight-in account has a normal debit balance.

The Freight-In Account