question archive How should a company record freight cost on goods purchased? a
How should a company record freight cost on goods purchased? a
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How should a company record freight cost on goods purchased?
a. Add to inventory purchases.
b. Subtract from cost of goods sold.
c. Add to cash.
d. Add to accounts receivable.
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The freight cost on goods purchased are direct expenses of the business and are included in the cost of inventory while recording the purchases.
Hence the correct option is (a) Add to inventory purchases.
