Jerry's Flowers sold and shipped merchandise across the country to a buyer. The terms were FOB destination. Assuming it paid the bill immediately, demonstrate the journal entry required by Jerry's Flowers under the perpetual inventory system to record the freight charges.

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Business

Jakobe Browning

29 February, 08:57

Jerry's Flowers sold and shipped merchandise across the country to a buyer. The terms were FOB destination. Assuming it paid the bill immediately, demonstrate the journal entry required by Jerry's Flowers under the perpetual inventory system to record the freight charges.

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Amani Mathis · Answer 1

Debit Delivery Expense; credit Cash.

Explanation:

The journal entry to record the freight expenses should be:

Dr Delivery (freight) expense XX

Cr Cash XX

All expenses have a debit balance, and when they increase, they must be debited.

All assets have a debit balance, and when they decrease, they must be credited.