Question

Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account?

Answer 1

Based on the perpetual system, a buyer can incur cash freight costs if they transport Inventory.

How are freight costs treated?

The perpetual system allows for the buyer of inventory to record the freight cost for the merchandise in the inventory account.

This means that the freight cost will be capitalized and added to the cost of the inventory to recover the costs.

Find out more on the perpetual system at https://brainly.com/question/25014592.

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