For the July 15 transaction the seller OLB requested the buyer to pay for $150 freight charges. Why do I have to debit 150 accounts Payable instead of merchandise inventory. I thought for freight costs the buyer would debit merchandise inventory and credit cash? Second question, how are the freight cost journalized for both the buyer and the seller?

Prepare journal entries to record the following merchandising transactions Mason Company, which the perpetual inventory system. (Hint. It will help to identify each receivable payable; for and example, record purchase on July 3 in Accounts Payable- OLB July 3 Purchased merchandise from OLB Corp. for S15.000 under credit terms of 1/10, n/30. roB destination, invoice dated July 3. 10, n/60, FOB destination, 7 Sold merchandise to Brill Co. for SIL 500 under credit terms of 10 Purchased merchandise from Rupert Corporation for $14.200 under credit terms of 1/10, n/45. FOB shipping point, invoice dated July 10. The invoice showed that at Mason's request, Rupert paid the $500 shipping charges and added that amount to the bill. (Hint: Discounts are not ap- plied to freight and shipping charges.) the July 7 sale to Brill Co. sold for 11 Paid $300 cash for shipping charges related to Mason $1,450 and been 12 Brill returned merchandise from the July 7 sale that had cost $1.850. The merchandise was restored to inventory. 14 After negotiations with Rupert Corporation concerning problems with the merchandise purchased on 10, Mason received a credit memorandum from Rupert granting a price of S2,000. 15 At OLB's request, Mason paid $150 cash for freight charges on the July 3 purchase, reducing the amount owed to 17 Received balance due from Brill Co. for the July 7 sale less the return on July 12. granted. 20 Paid the amount due Rupert Corporation for the July 10 purchase less the price reduction point, 21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FoB shipping invoice dated July 21.The merchandise had cost $7,000. 24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $1,300 to resolve the issue. 30 Received Brown's cash payment for the amount due from the July 21 sale. 31 Paid OLB Corp. the amount due from the July 3 purchase