The Wilson Company purchased $32,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,500 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system.

Question

Business

Kinsley Schneider

7 March, 18:25

The Wilson Company purchased $32,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,500 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system.

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Answers (1)

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Melina Ramsey · Answer 1

Total debits to the inventory account would be $34,500

Explanation:

Since the company uses the perpetual inventory system. They are aware of the cost of each merchandise. Also freight costs are included in the inventory cost since this cost are needed in order to get the inventory.