Brief Exercise 6-11 (Algo) Record freight charges for inventory using a perpetual system (LO6-5) Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $37,000. In addition to the cost of inventory, the company also pays $570 for freight charges associated with the purchase on the same day. Record (a) the purchase of inventory on account and (b) payment of freight charges.
Brief Exercise 6-11 (Algo) Record freight charges for inventory using a perpetual system (LO6-5) Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $37,000. In addition to the cost of inventory, the company also pays $570 for freight charges associated with the purchase on the same day. Record (a) the purchase of inventory on account and (b) payment of freight charges.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Brief Exercise 6-11 (Algo) Record freight charges for inventory using a perpetual system (LO6-5)
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $37,000.
In addition to the cost of inventory, the company also pays $570 for freight charges associated with the purchase on the same day.
Record (a) the purchase of inventory on account and (b) payment of freight charges.
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