On 3/1/13, target Inc. paid P&G Co. $16,000 for bottles of cooking oil. Target Inc. will sell those bottles of oil to its customers. Target Inc. uses perpetual method to record inventory transactions
Costs are related to the purchase transaction:
Freight – In* ---------------------$ 800
*the bottles were purchased F.O.B. shipping point
Freight-Out-----------------------$ 900
Marketing costs -----------------$ 1,000
Write journal entry to record purchase of inventory
Dr. _______________
Cr. ________________
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