If a purchaser using a perpetual inventory system pays freight costs, then the
A)Merchandise Inventory account is increased.
B)Merchandise Inventory account is not affected.
C)Freight Out account is increased.
D)Freight In account is increased.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, freight costs paid by the purchaser are added to the Merchandise Inventory account, as they are considered part of the cost of acquiring the inventory.

If a Purchaser Using a Perpetual Inventory System Pays Freight