I need help interpreting the following word problem. It is because I need to make the correct adjusting journal entry in a general journal.

A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for $3,175 for the goods and freight of $175, all dated 12/29/17. Goods were shipped FOB suppliers warehouse.

After I perform the adjusting journal entries for the above word problem, on the adjustments area of the Adjusted Trial Balance, should I debit $3,000 to the Baking Supplies asset account, and debit $175 to the Misc. Expense, and credit $3,175 to the Accounts Payable account? Or, should I debit $3,175 to the Baking Supplies asset account and credit $3,175 to the Accounts Payable account on the adjustments area of the Adjusted Trial Balance?

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After I perform the adjusting journal entries for the above word problem, on the adjustments area of the Adjusted Trial Balance, should I debit $3,000 to the Baking Supplies asset account, and debit $175 to the Misc. Expense, and credit $3,175 to the Accounts Payable account? Or, should I debit $3,175 to the Baking Supplies asset account and credit $3,175 to the Accounts Payable account on the adjustments area of the Adjusted Trial Balance?

The journal entry should be recorrded under 3 scenarios Scenario 1; When Peyton receives the invoice Inventory in transit A/c Dr $3175 To Clearing A/c $3175 (3175 = 3000 + 175 = worth of goods + transportation cost) NB; Transportation charge is a direct expense for the buyer. So it should be added to the cost of the merchandise Scenario 2; Supplier liability should be recorded when the goods are on transit and not received by the buyer Clearing A/c Dr $3175 To Supplier A/c $3175 Scenario 3; When goods received by the customer Inventory A/c Dr $3175 To Inventory in transit $3175 Unadjusted Trial Balance Dr. Cr. $67,520.04 $68,519.91 Adjustments Dr. Cr. $1,000.00 $700.00 $3.000.00 $15.506,70 $1.238.07 S200.000 $200.00 S2.114.55 $2.114.55 $170.49 $14,000.00 $2,000,000 $1,606.44 $1,200.00 $1.000.000 $3,175.000 Account Title Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Beginning Retained earnings Dividends Bakery Sales Merchandise Sales Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Rent Expense Wages Expense Miscellaneous Supplies Expense Business License Expense Misc. Expense $20.262.11 $3,383.28 $211.46 $5,000.00 $20,000.00 $50,144.84 Adjusted Trial Balance Dr. Cr. $68,520.04 $68,519.91 $700.00 $18,506.70 $1.038.07 $200.00 S2.114.55 S2.114.55 $170.49 $12,000.00 S406.44 $1.000.00 $23,437.11. $3,383.28 $211.46 $5.000.00 $20,000.00 $50,144.84 $105,000.00 $327,322.55 $1,205,64 $105,834.29 S859.77 $24,549.19 $10,670.72 $3,000.46 $2.045.77 $1,538.84 S105,000.00 S327.322.55 $1,205,64 S105.834.29 $859.77 $24,549.19 $10.670.72 $3,000.46 $2.045.77 $1,363.84 $175.00 Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Gain/Loss on disposal of equipment TOTAL $677.86 $1.091.08 $1,549.74 $818.31 $490.98 S677.86 $1,091.08 $1,549.74 S818.31 $490.98 $100.00 $432,111.32 $432,111.32 $100.00 S6,375.00 S429,136.32 $429,136.32 S6,375.000 Trial Balance As of December 31, 2017 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Dr Cr Dr Cr Dr Cr Cash (WN 3) 67,520.04 1,000.00 68,520.04 68,519.91 Accounts Receivable 68,519.91 700.00 700.00 Other Receivable - Insurance (WN 4) 15,506.70 3,175.00 Baking Supplies (WN 1) 18,681.70 1,238.07 200.00 1038.07 Merchandise Inventory (WN 2) 200.00 200.00 Consignment Inventory (WN 2) Prepaid Rent 2,114.55 2,114.55 Prepaid Insurance 2,114.55 2,114.55 Misc. Supplies 170.49 170.49 14,000.00 2,000.00 12,000.00 Baking Equipment (WN 4) 1,606.44 1,200.00 406.44 Accumulated Depreciation(WN 4) 3,000.00 3,000.00 Customer Deposit (WN 3) 20,262.11 3,175.00 23,437.11 Accounts Payable (WN 1) Wages Payable 3,383.28 3,383.28 Interest Payable 211.46 211.46 Notes Payable 5,000.00 5,000.00 Common Stock 20,000.00 20,000.00 50,144.84 50,144.84 Beginning Retained earnings Dividends 105,000.00 105,000.00 Bakery Sales 327,322.55 327,322.55 Merchandise Sales 1,205.64 1,205.64 105,834.29 105,834.29 Cost of Goods Sold - Baked 859.77 859.77 Cost of Goods Sold - Merchandise Rent Expense 24,549.19 25,549.19 Wages Expense 10,670.72 10,670.72 Misc. Supplies Expense 3,000.46 3,000.46 2,045.77 2,045.77 Business License Expense Misc. Expense 1,363.84 1,363.84 677.86 677.86 Depreciation Expense 1,091.08 1,091.08 Insurance Expense 1,549.74 1,549.74 Advertising Expense Interest Expense 818.31 818.31 490.98 490.98 Telephone Expense 100.00 100.00 Gain/Loss on Disposal of Equipment (WN 4) 429,136.38 429,136.38 6,375.00 6,375.00 433,111.32 433,111.32