Johnson & Jones has a cost of goods sold of $505,000, beginning inventory of $150,000,
purchases of $500,000, purchase returns of $25,000, purchase discounts of $5,000 and
freight in of $20,000. What is the value of ending inventory?
a. $150,000
b. $640,000
c. $135,000
d. 490,000
The journal entry to record the cash payment of freight in under the perpetual method would