Under a periodic system, shipping costs paid for goods received from a supplier increases the amount of

Question

Quizplus · Accepted Answer

Shipping costs paid for goods received from a supplier increase the cost of acquiring the goods, which is recorded in the account called Transportation-in. Therefore, the correct choice is C). Merchandise Inventory is the value of goods available for sale at the end of an accounting period. Cost of Goods Sold is the cost of goods that have been sold during an accounting period. Transportation-out refers to shipping costs associated with delivering goods to customers, which are expensed separately.

Under a Periodic System, Shipping Costs Paid for Goods Received