Using a perpetual inventory system, the cost of freight in
A) increases the cost of merchandise inventory.
B) is always paid by the seller.
C) is reflected in an expense account called Freight In.
D) reflects the cost of delivering goods to customers.

Question

Quizplus · Accepted Answer

Freight in costs under a perpetual inventory system are added to the cost of merchandise inventory, increasing the total inventory value on the balance sheet until the inventory is sold.

Using a Perpetual Inventory System, the Cost of Freight in