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A company purchases merchandise Inventory for $1,000 plus freight of $100 from Field Supplier Co., with credit terms 2/10, n/
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Answer #1
Journal entry would be
Debit Credit
Merchandise inventory (1000+100) 1100
Accounts payable 1100
Under perpetual inventory system,cost of inventory includes freight charges
Answer is
4th option
merchandise inventory for $ 1100
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