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When a perpetual system is in used and transportation cost is incurred to obtain inventory, the transportation cost is: added to Inventory. reported as Selling,
When a perpetual system is in used and transportation cost is incurred to obtain inventory, the transportation cost is: added to Inventory. reported as Selling, General & Administrative Expense on the income statement. reported as a contra-account that is subtracted from sales revenue when determining net sales. deducted from the cost of Goods sold when determining gross profit
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