Question

Bluestein Inc. purchases goods from one of its suppliers and incurs freight charges to have the goods delivered. The company uses a perpetual system. Which of the following statements is correct? Multiple Choice Bluestein will record the freight charges in its Freight-in account. Bluestein will record the freight charges in its Inventory account. Bluestein will record the freight charges in its Selling Expense account. Bluestein will record the freight charges in its Cost of Goods Sold account.

Answer 1

Under a perpetual inventory system, Bluestein Inc. will record the freight charges in its Inventory account, as these charges are necessary to bring the goods to a saleable state and location.

Step-by-step explanation:

Bluestein Inc. purchases goods using a perpetual inventory system and incurs freight charges for the delivery of these goods. In a perpetual inventory system, all costs that are necessary to bring the inventory to a saleable condition and location are included in the Inventory account. Therefore, the correct statement is that Bluestein will record the freight charges in its Inventory account. The cost will remain in the Inventory account until the goods are sold, at which point it will be transferred to the Cost of Goods Sold account.

Answer 2

answer is 1

Step-by-step explanation:

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