question archive A company, which uses the periodic method, purchases merchandise on account for $56,000 FOB shipping point
A company, which uses the periodic method, purchases merchandise on account for $56,000 FOB shipping point
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A company, which uses the periodic method, purchases merchandise on account for $56,000 FOB shipping point. Freight charges are $900 COD. How should the company record these purchases?
a. debit Purchases $56,000, credit Accounts Payable $55,100, and credit Cash $900
b. debit Purchases $56,900, credit Accounts Payable $56,000, and credit Cash $900
c. debit Purchases $56,000, debit Freight-In $900, credit Accounts Payable $56,000, and credit Cash $900
d. debit Purchases $55,100, debit Freight-In $900, credit Accounts Payable $55,100, and credit Cash $900
Option 1
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