On March 5, 2020, Northwest Co. purchased $400,000 in merchandise on account with credit terms of 1/15, n/45. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit on March 12, 2020. Northwest paid the vendor for the amount owe on March 17, 2020. Assuming Northwest uses a periodic inventory system and the net method to record purchases, what journal entry would Northwest record for the freight charges on March 5, 2020?

Multiple Choice

• Inventory	7,500
  Cash		7,500

• Freight-In	7,500
  Cash		7,500

• Inventory	7,425
  Cash		7,425

• Freight-In	7,425
  Cash		7,425