Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account?
A)Freight Expense
B)Freight-In
C)Inventory
D)Freight-Out

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, cash freight costs incurred by the buyer are added to the Inventory account as they are considered part of the cost of acquiring the inventory.

Under the Perpetual System, Cash Freight Costs Incurred by the Buyer