The Freight In account
A)increases the cost of merchandise purchased.
B)is a contra account 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 transportation cost of acquiring inventory, which increases the total cost of merchandise purchased. It does not act as a contra account, is not a permanent account (it's closed to the cost of goods sold at the end of the period), and has a normal debit balance because it represents an additional cost.

The Freight in Account