The journal entry to record the purchase of merchandise on account for $3,950 with freight of $245 prepaid by their supplier and added to the invoice is:
Question
Solution 1
The journal entry would be as follows:
Step 1: Debit the Inventory account for the total amount of the purchase and the freight. This is because the freight was prepaid by the supplier and added to the invoice, making it part of the cost of the merchandise.
Journal Entry: Inventory Debit $4,195 ( Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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