a-company-purchases-inventory-under-fob-shipping-point-terms-and-incurs-200-in-f

Question

A company purchases inventory under FOB Shipping Point terms and incurs $200 in freight costs. How should these costs be recorded?

Accepted Answer

Debit Freight In $$200; Credit Accounts Payable 200.$$

Answer

Debit Purchases $$200; Credit Cash 200.$$

Answer

Debit Inventory $$200; Credit Cash 200.$$

Answer

Debit Freight Expense $$200; Credit Accounts Payable 200.$$

A company purchases inventory under FOB Shipping Point terms and incurs \$200 in freight costs. How should these costs be recorded?