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

Question

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Under perpetual inventory system, freight paid by the seller on goods sold is added to the cost of goods sold. The journal entry for this would be a debit to Cost of Goods Sold account and a credit to Cash or Accounts Payable account (depending on whether the freight was paid in cash or on credit). Option B is the only one with a debit to Cost of Goods Sold account.

Under the Perpetual Inventory System,the Journal Entry to Record the Freight