If a purchaser using a perpetual inventory system pays the transportation costs for goods purchased, then the
A)Inventory account is increased.
B)Inventory account is not affected.
C)Freight-Out account is increased.
D)Delivery Expense account is increased.

Question

Quizplus · Accepted Answer

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

If a Purchaser Using a Perpetual Inventory System Pays the Transportation