Ask Question
21 June, 03:34

Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges. Which of the following is one part of the required journal entry when Jax pays the shipping charges of $200? a). a debit to freight-out for $200 b). a debit to inventory for $200 c). A debit to Delivery Expense for $200 d). A debit to cash for $200

+1
Answers (1)
  1. 21 June, 06:03
    0
    b). a debit to inventory for $200

    Explanation:

    The journal entry is shown below:

    Inventory A/c Dr $200

    To Cash A/c $200

    (Being the shipping charges is paid for cash)

    Under the perpetual inventory account, all the expenses which are incurred to bring the product to the destination have come under the inventory account. So, we debited the inventory account and credited the cash account
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jax Company uses a perpetual inventory system and on November 30 purchased merchandise for which it must pay the shipping charges. Which of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers