a-company-purchases-goods-under-fob-shipping-point-terms-the-goods-cost-1000-and

Question

A company purchases goods under FOB Shipping Point terms. The goods cost $$1,000, and the freight cost is 50. $$How should the company record the freight cost?

Accepted Answer

Debit Inventory $$50; Credit Accounts Payable 50$$

Answer

Debit Inventory $$1,050; Credit Accounts Payable 1$$,050

Answer

Debit Freight Expense $$50; Credit Cash 50$$

Answer

Debit Freight Expense $$50; Credit Inventory 50$$

A company purchases goods under FOB Shipping Point terms. The goods cost \$1,000, and the freight cost is \$50. How should the company record the freight cost?