Homework Answers
Under the method of Free on Board (FOB) destination, the journal entry to be posted for the freight expense or cost is as:
Delivery expense A/c..................Dr XXXX
Cash A/c...............................Cr XXXX
(Being recognize the freight out shipping expense or cost)
Freight expense is the cost which is incurred by the person in order to send the cargo to the destination location from the source location. And in the case of FOB destination method, it is bear by the seller. The above mentioned entry is posted by the seller.
So, the account which is used is the Delivery expense. Hence, the correct option is D.
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