Which of the Following Is the Correct Journal Entry for Freight

question 75

Multiple Choice

Which of the following is the correct journal entry for freight paid on goods purchased by a merchandiser using the periodic inventory system?

• A) \(\begin{array}{c}
• \begin{array}{|l|}
• \hline \text {Purchases}\\
• \hline \text {Accounts Payable}\\
• \hline
• \end{array}
• \end{array}\)
• B) \(\begin{array}{c}
• \begin{array}{|l|}
• \hline \text {Merchandise Inventory}\\
• \hline \text {Accounts Payable }\\
• \hline
• \end{array}
• \end{array}\)
• C) \(\begin{array}{c}
• \begin{array}{|l|}
• \hline \text {Freight In}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\\
• \hline \text {Cash }\\
• \hline
• \end{array}
• \end{array}\)
• D) \(\begin{array}{c}
• \begin{array}{|l|}
• \hline \text {Accounts Payable}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\\
• \hline \text {Cash }\\
• \hline
• \end{array}
• \end{array}\)

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Definitions:

Mistake as to Existence

A legal misunderstanding or error regarding the actual existence of a subject matter or condition of a contract.

Fraudulent Misrepresentation

A false statement made knowingly without belief in its truth or recklessly and without concern for its truth, which induces another party to enter into a contract.

Rescission

The act of cancelling a contract and returning all parties involved to their positions prior to the agreement, effectively nullifying the contract's obligations.

Demonstrator

A person who participates in a public protest or demonstration.