A buyer uses a perpetual inventory system, and it purchases merchandise on terms of FOB shipping point. On December 20, the ship

Question

4 years ago

15

A buyer uses a perpetual inventory system, and it purchases merchandise on terms of FOB shipping point. On December 20, the ship

ping company sends an invoice for $125 to the party responsible for the freight charges, and cash payment is made immediately. Complete the buyer's necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit column.

Business

1 answer:

ohaa [14] · Answer 1 · 2022-01-17T02:43:33+03:00

Answer:

Dr Merchandise Inventory125

Cr Cash 125

Explanation:

Since we were told that the shipping company invoice was $125 to the party responsible for the freight charges and the cash payment is been made immediately without delay

Therefore the buyer's necessary journal entry will be

Dec. 20

Dr Merchandise Inventory125

Cr Cash 125