Under the perpetual inventory system, the journal entry to record the freight paid by the seller on goods sold is:

Question

Quizplus · Accepted Answer

The journal entry to record the freight paid by the seller on goods sold under the perpetual inventory system is to increase the inventory cost and the accounts payable. Therefore, the correct journal entry would be:
Inventory (debit) xxx
Accounts Payable (credit) xxx
Where xxx is the amount of the freight paid. The correct choice is B, as it represents this journal entry.

Under the Perpetual Inventory System, the Journal Entry to Record