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 would be to debit Freight-Out (an expense account) and credit Cash or Accounts Payable (depending on if the freight was paid in cash or on credit). Choice B matches this description with the accounts Freight Expense and Accounts Payable.

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