When the seller is liable for the shipping costs, the payment for the freight in the seller's accounts is recorded with a debit to:

Question

Quizplus · Accepted Answer

When the seller is liable for the shipping costs, the expense is related to the delivery of goods to customers, thus it is recorded as a debit to Delivery Expense or Freight Out in the seller's accounts. This reflects the cost of sending goods to customers, not the cost of receiving goods for inventory.

When the Seller Is Liable for the Shipping Costs, the Payment