a-company-purchases-inventory-for-3000-and-incurs-a-freight-cost-of-150-under-fo

Question

A company purchases inventory for $$3,000 and incurs a freight cost of 150 $$under FOB Shipping Point terms. What is the correct journal entry?

Accepted Answer

Debit Inventory $$3,150; Credit Accounts Payable 3$$,150

Answer

Debit Inventory $$3,000; Debit Freight Expense 150$$; Credit Accounts Payable $3,150

Answer

Debit Freight Expense $$150; Credit Cash 150$$

Answer

Debit Inventory $$3,000; Credit Accounts Payable 3$$,000

A company purchases inventory for \$3,000 and incurs a freight cost of \$150 under FOB Shipping Point terms. What is the correct journal entry?