Which of the following accounts is used in a periodic inventory system to record the cost of freight to transport purchased merchandise?
A)Merchandise Inventory
B)Freight Expense
C)Miscellaneous Expense
D)Purchases
E)Transportation-In

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of freight to transport purchased merchandise is recorded in the Transportation-In account. This account is used to capture the transportation costs incurred to bring the goods to the company's warehouse or distribution center. The amount is then added to the cost of the merchandise to determine the total cost of inventory. The other accounts listed (Merchandise Inventory, Freight Expense, Miscellaneous Expense, and Purchases) are not specifically used to record transportation costs in a periodic inventory system.

Which of the Following Accounts Is Used in a Periodic