A buyer debits the shipping charges that they pay for merchandise purchased to inventory under the perpetual inventory system.

Name: A buyer debits the shipping charges that they pay for merchandise purchased to inventory under the perpetual inventory system.
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Question

Quizplus · Accepted Answer

Under the perpetual inventory system, shipping charges paid by the buyer for merchandise are added to the inventory cost, hence debited to the inventory account, as these costs are considered part of the cost of acquiring the inventory.

A Buyer Debits the Shipping Charges That They Pay for Merchandise