Under a periodic system,the account debited for shipping costs on goods received from the vendor is called:

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The account debited for shipping costs on goods received from the vendor is called Transportation-in. This is an expense account that is used to record the costs of transporting goods purchased from a vendor to the buyer's location. It is a part of the cost of the goods purchased and is added to the cost of the purchases when calculating the total cost of goods available for sale. Choice A, Merchandise Inventory, is the account that is debited when goods are purchased and received into inventory. Choice B, Cost of Goods Sold, is the account that is debited when goods are sold. Choice C, Transportation-out, is a similar account but is used to record the costs of shipping goods sold to customers.

Under a Periodic System,the Account Debited for Shipping Costs on Goods