On an income statement, Freight in is added to:
A) Net sales.
B) Net purchases.
C) Goods available for sale.
D) Purchase discounts.

Name: On an income statement, Freight in is added to: A) Net sales. B) Net purchases. C) Goods available for sale. D) Purchase discounts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Freight in is considered a part of the cost of purchasing inventory, so it is added to net purchases to accurately reflect the total cost of goods bought.

On an Income Statement, Freight in Is Added To