LIFO Reserve isn't an option.

Brief Exercise 6-11 Record freight charges for inventory using a perpetual system (LO6-5) Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $35,000. In addition to the cost of inventory, the company also pays $550 for freight charges associated with the purchase on the same day. Record the purchase of inventory on February 2, including the freight charges. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 February 02 35,000 Inventory Accounts Payable 35,000 2 February 02 Cost of Goods Sold 550 Inventory 550