Kramer, Inc

question 225

Multiple Choice

Kramer, Inc. uses a periodic inventory system. Kramer purchased $1,000 of merchandise on credit, with terms 1/10, n/30, FOB shipping point. The shipping cost of $150 was paid upon receipt of the goods. The journal entry to record the shipping cost includes a credit to Cash and a debit to:

• A)Freight Expense
• B)Merchandise Inventory
• C)Purchases
• D)Transportation-In
• E)Accounts Payable

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Definitions:

Social Security Benefits

Social Security Benefits are payments made to qualified retirees and disabled people, and to their spouses, children, and survivors.

Withholdings

The portion of an employee's earnings withheld by the employer for the purpose of paying taxes or other deductions.

Current Employees

Individuals who are actively working for an organization at a given time.

Government Fund

A financial allocation from the government aimed at supporting specific projects, sectors, or initiatives, often involving public resources.