Asked by
Leila Aldandachi
on Nov 14, 2024
Verified
The Freight-In account
A) increases the cost of merchandise purchased.
B) is contra to the Purchases account.
C) is a permanent account.
D) has a normal credit balance.
Freight-In
The cost associated with transporting goods to a warehouse or production facility, considered part of the inventory cost.
Merchandise Purchased
Expenses related to the acquisition of goods for resale in the ordinary course of business.
- Familiarize oneself with the roles that Freight-in, sales returns and allowances, and purchase discounts play in determining inventory expenses.
Verified Answer
AS
Learning Objectives
- Familiarize oneself with the roles that Freight-in, sales returns and allowances, and purchase discounts play in determining inventory expenses.