in-a-perpetual-inventory-system-how-are-freight-costs-treated-when-the-buyer-is-

Question

In a perpetual inventory system, how are freight costs treated when the buyer is responsible for them?

Accepted Answer

They are added to the inventory value.

Answer

They are deducted from the inventory value.

Answer

They are ignored in the accounting records.

Answer

They are recorded as a separate expense.