Question: Question 23 Select the correct analysis and entry for the following transaction for ABC Company. ABC sold $6,500 of merchandise inventory on account, FOB

Question 23 Select the correct analysis and entry for the following transaction

Question 23 Select the correct analysis and entry for the following transaction for ABC Company. ABC sold $6,500 of merchandise inventory on account, FOB Shipping Point. The shipping cost of $65 were paid in cash by the appropriate party. Select the option that represents how ABC should record the shipping cost. Account DR CR Option A Inventory 65 Cash 65 Account DR CR Option B Shipping Expense 65 Cash 65 Account DR CR Option C Freight-Out 65 Accounts Payable 65 Account DR CR Option D Cash 65 Inventory Option E No Entry Required - Buyer Pays Freight 65

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