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

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, the freight paid by a seller for goods sold is added to the cost of goods sold. Therefore, the journal entry should be a debit to the Cost of Goods Sold account and a credit to the Freight Expense account. The correct option is B, as it represents this journal entry. The other options either debit the wrong account or credit the wrong account.

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