Question

Using a periodic inventory system, the buyer’s journal entry to record the freight costs includes a:...

Using a periodic inventory system, the buyer’s journal entry to record the freight costs includes a: Select one: A. Debit to Cost of Goods Sold B. Debit to Freight In C. Debit to Inventory D. Debit to Purchases

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct answer is D) Debit to Purchases

Explaination

In Periodic Inventory system, freight cost is added/debited in Purchase account . As per Journal accepted accounting principles all the cost which are incurred to bring inventory to its current location should be added into the inventory, if freight has been incurred to bring purchases to its present location, so it will be debited in it. Inventory account and cost of goods sold is adjusted at each sale and purchase in prepetual inventory system. As periodic inventory is being followed so freight cost will be debited in Purchase account.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The difference between a perpetual inventory system and a periodic inventory system is: a. periodic will...
The difference between a perpetual inventory system and a periodic inventory system is: a. periodic will record inventory purchases in the inventory account. b. perpetual requires a physical inventory count. c. periodic will record the cost of goods sold amount at the sale. d. periodic will adjust inventory at the end of each period with a physical count.
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: John's purchased merchandise on account for $5,100. Freight charges of $350 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $650 and John’s account was credited by the supplier. Merchandise costing $2,850 was sold for $5,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...
3. Under the periodic system, which of the following occurs when a company must pay freight...
3. Under the periodic system, which of the following occurs when a company must pay freight charges on merchandise it purchases for resale? a. Transportation-in is added to the inventory account. b. Transportation-in is subtracted from purchases. c. Freight charges are paid by the buyer. d. Transportation-in is included in the total cost of purchases used to determine cost of goods sold.
Need a journal entry with a description ABC uses a periodic inventory system, and the ending...
Need a journal entry with a description ABC uses a periodic inventory system, and the ending inventory for each year is determined by taking a complete physical inventory at year-end. A physical count was taken on December 31, 2016, and the inventory on-hand at that time totaled $100,000, which reflects historical cost. Record the adjusting entry for properly recognizing 2016 Cost of Goods Sold. Hint: This was the first year of operations, so beginning inventory balance is zero. Additionally, ABC...
If a company uses a periodic inventory system, which of the following entry or entries is/are...
If a company uses a periodic inventory system, which of the following entry or entries is/are required to record the sale of merchandise on account? I Debit Accounts Receivable; Credit Sales Revenue II Debit Cost of Goods Sold; Credit Purchases III Debit Cost of Goods Sold; Credit Inventory IV Both I & III are necessary entries Select one: a. II b. III c. IV d. I In a period of rising prices, which method would yield the lowest ending inventory,...
Which of the following statements concerning the journal entries for inventory transactions are correct in a...
Which of the following statements concerning the journal entries for inventory transactions are correct in a periodic inventory system? 1. Debit Purchase account to record purchase of inventory. 2. Debit Inventory account to record purchases of inventory. 3. Debit Cost of Goods Sold account when inventory is sold. 4. Credit Inventory account when inventory is sold. Why is only 1 correct?
38. Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Select...
38. Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Select one: a. Inventory account b. Purchases account c. Accounts Receivable account d. Cost of Goods Sold account 39. Floor Covering Inc. maintains inventory records using a perpetual costing system and a FIFO cost flow assumption. Data for June 2018, is as follows: June 1           Balance               90 units at $10 June 10         Purchase            110 units at $12 June 15         Sale                   ...
The journal entry to record 31 days of accrued interest at the end of the month...
The journal entry to record 31 days of accrued interest at the end of the month on a $10,000 note payable at 9% interest would include (use a 365-day year to calculate interest): a. debit Interest Expense for $76.44 b. debit Interest Payable for $900.00 c. debit Interest Expense for $900.00 d. debit Interest Payable for $76.44 When a company issues stock that has a par or stated value, then the par or stated value of the shares is the...
1. Under the perpetual inventory system, which of the following accounts would not be used? Select...
1. Under the perpetual inventory system, which of the following accounts would not be used? Select one: a. Sales b. Accounts Payable c. Cost of Goods Sold d. Purchases e. Inventory 2. Jones Merchandise uses a perpetual inventory system. It is a publicly traded company. On February 19 it sold $8,000 of motor parts to Vivak Candles on account. Jones statistics indicate 5% of its sales will result in returns. Jones's cost of inventory on motor parts is 50% of...
5. The journal entry to record a return of merchandise purchased on account under a perpetual...
5. The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit            a. Accounts Payable.            b. Purchase Returns and Allowances.            c.   Sales.            d. Merchandise Inventory. 6. Freight costs incurred by a seller on outgoing merchandise are debited to            a. the Cost of Goods Sold account.            b. the Sales Revenue account.            c.   an operating expense account.            d. the Sales Returns and Allowances account. 7. If...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT