Which of the Following Is the Correct Journal Entry for Freight

question 49

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

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Definitions:

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed as an annual rate.

Investment Project

A project involving the allocation of funds or resources towards a venture with the expectation of generating income or profit in the future.

Investment Project

A planned set of capital expenditures and activities aimed at generating future benefits or returns.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.