The amount recorded for merchandise inventory includes all of the following except:
A) Purchase discounts.
B) Returns and allowances.
C) Freight costs paid by the buyer.
D) Trade discounts.
E) Freight costs paid by the seller.

Question

Quizplus · Accepted Answer

Freight costs paid by the seller are not included in the merchandise inventory cost; they are considered a selling expense.

The Amount Recorded for Merchandise Inventory Includes All of the Following