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When Goods Are Shipped FOB Destination and a Periodic Inventory

Question 167

Multiple Choice

When goods are shipped FOB destination and a periodic inventory system is used, the buyer would:


A) debit Freight In for the amount of the transportation charges.
B) debit Delivery Expense for the amount of the transportation charges.
C) make no journal entry for the transportation charges.
D) debit Inventory for the amount of the transportation charges.

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