Eck Company Uses the Perpetual Inventory Method

question 111

Multiple Choice

Eck Company uses the perpetual inventory method.On April 15,Carlton Company purchased merchandise inventory on terms of FOB destination.When the merchandise was delivered,Eck paid $750 cash for the shipping charges.How would the company record this transaction?

• A)Debit Merchandise Inventory for $750 and credit Cash for $750.
• B)Debit Transportation-In for $750 and credit Cash for $750.
• C)Debit Merchandise Inventory for $750 and credit Accounts Payable for $750.
• D)Debit Transportation-In for $750 and credit Accounts Payable for $750.
• E)Debit Delivery Expense for $750 and credit Cash for $750.