An entity with a December 31 year end purchased $2,000 of inventory on account. The
seller was responsible for delivery to the shipping point, with freight of $50 paid at
destination by the buyer. The invoice date was December 27, Year 1, and the goods arrived
on January 3, Year 2.
Now assume the terms required the seller to deliver to the destination instead of the
shipping point. What is the correct amount of inventory and freight-in relating to this
purchase on the Year 1 financial statement?

Inventory ..Freight-In

$0 $0$2,050 $0$0 $50$2,000 $50

Answer rating: 100% (QA)

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