If the seller pays freight charges to have goods delivered to a customer, it would

Question

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If the seller pays freight charges to have goods delivered to a customer, it would debit the amount to Freight-Out or Delivery Expense. This is because freight-out or delivery expense is a cost incurred by the seller to get the goods delivered to the customer and is therefore classified as a selling expense rather than a cost of goods sold.

If the Seller Pays Freight Charges to Have Goods Delivered