Concept: Perpetual Inventory: Freight Costs (FOB Shipping Point)6m
Concept: Perpetual Inventory: Freight Costs (FOB Destination)4m
If a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the
a. Merchandise Inventory account will be increased.
b. Merchandise Inventory account will not be affected.
c. seller will bear the freight cost.
d. carrier will bear the freight cost.
Which of the following accounts is used in a perpetual inventory system to record the cost of freight to transport purchased merchandise?
a. Merchandise inventory
b. Miscellaneous expense
The cost of delivering merchandise to the customer for sales made FOB destination is:
a. Part of cost of goods sold.
b. Used in the calculation of net sales.
c. An operating expense.
d. A reduction of gross profit.