When a perpetual system is used and transportation cost is incurred to obtain inventory,the transportation cost is:
A)added to Inventory.
B)reported as Selling,General & Administrative Expense on the income statement.
C)reported as a contra-account that is subtracted from sales revenue when determining net sales.
D)deducted from the Cost of Goods Sold when determining gross profit.

Question

Quizplus · Accepted Answer

When it is incurred to obtain inventory,transportation cost (also called freight-in)is added to the Inventory account.

When a Perpetual System Is Used and Transportation Cost Is