BSP Corporation Purchased Inventory from RSR Corporation on Account, $1,000

question 58

Multiple Choice

BSP Corporation purchased inventory from RSR Corporation on account, $1,000.BSP also paid $100 freight to reimburse RSR for its payment to the common carrier that transported the merchandise.The $100 freight charge is likely to be found on:

• A)The bill of lading.
• B)RSR Corporation's invoice.
• C)Both the bill of lading and RSR Corporation's invoice.
• D)Either the bill of lading or RSR Corporation's invoice, but not both.

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Definitions:

Check Register

A record of transactions in a checking account, tracking all checks written, deposits made, and current balance.

Selling Company

A business entity that primarily engages in selling goods or services to consumers or other businesses.

Sales Invoice

A bill sent to customer(s) reflecting a credit sale.

Gross Method

Gross Method in accounting is a method for recording purchases at the full invoice price without deducting any cash discounts offered.