Final answer:
The journal entry for freight costs incurred by a buyer includes debit to Freight-In/Shipping Expense and credit to Cash or Accounts Payable.
Step-by-step explanation:
When freight costs are incurred by the buyer, the journal entry would typically be a debit to a specific expense account related to shipping or inventory costs and a credit to cash or accounts payable depending on whether the payment is made immediately or on credit. Here's an example:
- Debit: Freight-In/Shipping Expense
- Credit: Cash/Accounts Payable
This journal entry reflects the buyer's cost of receiving goods. The "Freight-In" or "Shipping Expense" account increases to reflect the new expense, while the "Cash" account decreases if payment is made immediately, or the "Accounts Payable" increases if the expense is added to the buyer's outstanding liabilities to be paid later.