Fry company uses the perpetual inventory system and purchases merchandise invent

Question

Fry company uses the perpetual inventory system and purchases merchandise inventory with shipping terms FOB tipping point. They would record the freight charges as A.) A debit to merchandise inventory B.) A credit to merchandise inventory C.) A debit to delivery expense D) A debit to cost of goods sold E) none of these Fry company uses the perpetual inventory system and purchases merchandise inventory with shipping terms FOB tipping point. They would record the freight charges as A.) A debit to merchandise inventory B.) A credit to merchandise inventory C.) A debit to delivery expense D) A debit to cost of goods sold E) none of these A.) A debit to merchandise inventory B.) A credit to merchandise inventory C.) A debit to delivery expense D) A debit to cost of goods sold E) none of these

Explanation / Answer

Journal entry :

So answer is a) A debit to merchandise inventory

Date account and explanation debit credit Merchandise inventory Cash (To record freight charge)

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