Im having trouble with this part of my homework. i recieve a seperate bill for freight charges ($314) and i was wondering if i debit merchendise inventory or transportion-in. My freind told me it was Cost of goods sold, but it doesn't make sense since you haven't sold anything. Please help.
Also is this journal entry correct? I recieved a billed and issued a check for transportation fees.
Debit-transportation-in
credit-cash|||Yes, that is correct - some large companies that carry a large inventory will add the freight
directly to the particular item as a cost of the item - most smaller companies with only
a few inventory products will use the freight in method - either way is totally correct|||debit transport in /other is correct
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment