Question 13 (1 point) The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is: debit Purchases $965; credit Accounts Payable $965 debit Accounts Payable $965, credit Freight in $65; credit Purchases $900 debit Purchases $900, debit Freight In $65; credit Accounts Payable $965 debit Accounts Receivable $965; credit Sales $965
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The amount of the purchase is $900, so debit Purchases $900. Second, the company is also paying for freight, which is a cost associated with getting the merchandise to the company. This is typically recorded in a Freight In or Freight Expense account. The amount Show more…
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