The Merchandise Inventory account is used in each of the following except the entry to record
A) goods purchased on account.
B) the return of goods purchased.
C) payment of freight on goods sold.
D) payment within the discount period.

Question

Quizplus · Accepted Answer

The Merchandise Inventory account is used to record the cost of inventory purchased or produced and held for sale. Payment of freight on goods sold is an expense and is recorded separately in the Freight-out account. Therefore, option C is the correct answer as it does not involve the Merchandise Inventory account.

The Merchandise Inventory Account Is Used in Each of the Following