If a purchaser using a perpetual system agrees to freight terms of FOB shipping point then the
A) Inventory account will be increased.
B) Inventory account will not be affected.
C) seller will bear the freight cost.
D) carrier will bear the freight cost.

Question

Quizplus · Accepted Answer

Under FOB shipping point terms, the buyer is responsible for the freight costs, and these costs are typically added to the inventory account, increasing its value.

If a Purchaser Using a Perpetual System Agrees to Freight