Oscar's Packaging Shipped Goods to a Customer and Paid the Freight

question 131

Essay

Oscar's Packaging shipped goods to a customer and paid the freight out of $400 in cash.Please provide the journal entry for the payment of freight out.
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Definitions:

Sales Revenue

The total amount of money earned from goods and services sold before any expenses are subtracted.

Goodwill

An intangible asset that arises when a company acquires another business for a price higher than the fair value of its net identifiable assets and liabilities.

Cost Method

An accounting method used to value an investment, where the investment is recorded at its original cost without adjusting for market changes.

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.