If the perpetual inventory system is used to record the purchase and sale of goods, the account used to record shipping charges is the:
A)merchandise inventory account.
B)purchases account.
C)freight in account.
D)transportation in account.

Question

Quizplus · Accepted Answer

The perpetual inventory system records shipping charges directly to the merchandise inventory account, as these costs are considered part of the cost of acquiring inventory.

If the Perpetual Inventory System Is Used to Record the Purchase