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Alpha used a periodic inventory system. Merchandise was purchased on account for $2,000. The transaction was...

Alpha used a periodic inventory system. Merchandise was purchased on account for $2,000. The transaction was F.O.B. shipping point. Freight of $100 was originally paid by the seller. Alpha's journal entry to reflect this purchase includes debits to:

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Options are not available, naming can be slightly different: Option may included both or either of below debits: Solution: 2,000 $ 100 Answer: Purchase A/c Freight In Explanation As per Periodic method, purchase of merchandise is initially recorded to Purchase Account and any related freight charges are recorded to Freight in account. Under FOB shipping term, freight is paid by buyer.

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