Concept: Periodic Inventory: Freight Costs (FOB Shipping Point)5m
Concept: Periodic Inventory: Freight Costs (FOB Destination)3m
Cainas Cookies places an order with Publix for ingredients on 10/29 for $300. Publix ships these on 10/31 and they arrive on 11/2, terms 1/10, n/30, FOB shipping point. Cainas pays for these on 11/5. Assuming periodic inventory system, what journal entry should Cainas make on 10/31?
a. Debit: Inventory $300 and Credit: A/P $300
b. Debit: Purchases $300 and Credit: A/P $297 and Purchase discounts $3
c. Debit: Purchases $300 and Credit: A/P $300
d. Debit: Inventory $300 and Credit: A/P $297 and Credit: Purchase discounts $3
Kyla Shoe Inc. purchased merchandise from Coles Company with freight terms of FOB shipping point. The freight costs will be paid by the
c. transportation company.
d. buyer and the seller.
Which of the following accounts is used in a periodic inventory system to record the cost of freight to transport purchased merchandise?
a. Merchandise inventory
b. Miscellaneous expense