https s/assessment/take/launchjsp?course assessment id 499551 18course id- 44546

Question

https s/assessment/take/launchjsp?course assessment id 499551 18course id- 445464 18new attempt 18icontent i QUESTION 20 Old Navy received a large order from TJMaxx for tshirts Old Navy paid $275 to a trucking company to deliver the goods to a TJMax warehouse Which of the tollowing correctly shows the effects of this payment on Old Navy's horizontal statements model? Cash A Peyable stockRees Expenses Income A (275) B. (275) (275 (275) 275 275 275 75) 275 275) 275 OD Cliek Save and Submit to saive and submit. Chick Save All Anseers to save all answers Save All Anse 6 8

Explanation / Answer

Answer is C. Cash ($275)   = Retained earnings ($275) ;   Expense $ 275 = net income ($275) Explanaton: Freight paid to trucking company is an expense of the Old Navy if it is sold FOB destination. The journal entry will be as under: Freight outward Account Dr. 275       Cash account 275

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