ACE Manufacturing pays a freight bill of $54 to United Trucking Company for merchandise purchased from Jackson Sales, terms FOB shipping point. When recording the payment with the periodic inventory method, ACE would debit the $54 cost of the freight to

Question

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Under the periodic inventory system, freight costs for merchandise purchased are recorded in a separate account called "Freight-In" or "Transportation-In," which is added to the cost of purchases.

ACE Manufacturing Pays a Freight Bill of $54 to United