Question
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $21,000. In addition to the
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $21,000.
In addition to the cost of inventory, the company also pays $410 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 transaction/event, select "No journal entry required" in the first account field.)
1.Record the purchase of inventory on account.
2.Record the payment of freight charges in cash.
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