Multiple Choice
Fulton Company uses the periodic inventory method.On April 15,Carlton Company purchased merchandise inventory on terms of FOB destination.When the merchandise was delivered,Fulton paid $750 cash for the shipping charges.How would the company record this transaction?
A) Debit Merchandise Inventory for $750 and credit Cash for $750.
B) Debit Transportation-In for $750 and credit Cash for $750.
C) Debit Merchandise Inventory for $750 and credit Accounts Payable for $750.
D) Debit Transportation-In for $750 and credit Accounts Payable for $750.
E) Debit Delivery Expense for $750 and credit Cash for $750.
Correct Answer:
Verified
Correct Answer:
Verified
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