Solved

Avery Supplies Uses a Periodic Inventory System  Freight in 250 Cash 250\begin{array} { | l | r | r | } \hline \text { Freight in } & 250 & \\\hline \text { Cash } & & 250 \\\hline\end{array}

Question 119

Multiple Choice

Avery Supplies uses a periodic inventory system.Avery purchased $10,000 of inventory on account.The terms were 3/10,n/30.The purchase was made on February 1.
-Avery paid the shipper $250 cash for freight in.How should Avery properly record the freight in?


A)  Freight in 250 Cash 250\begin{array} { | l | r | r | } \hline \text { Freight in } & 250 & \\\hline \text { Cash } & & 250 \\\hline\end{array}
B)  Accounts payable 250 Purchases 250\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 250 & \\\hline \text { Purchases } & & 250 \\\hline\end{array}
C)  Inventory 250 Cash 250\begin{array} { | l | r | r | } \hline \text { Inventory } & 250 & \\\hline \text { Cash } & & 250 \\\hline\end{array}
D)  Freight in 250 Accounts payable 250\begin{array} { | l | r | r | } \hline \text { Freight in } & 250 & \\\hline \text { Accounts payable } & & 250 \\\hline\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions