XYZ Store purchased merchandise for $2,300, terms 2 n 1030 To get the merchandise ready for sale, XYZ also paid $100 for freight - in and $50 for insurance during transportation. The entry to record the cost of inventory will include a debit to Inventory $2,450. debit to Cash $2,450. credit to Accounts Payable $2,401. debit to Inventory $2,300