Question

Record the following transaction in a transaction analysis chart for the​ buyer: Bought merchandise for $ 8 comma 600 on account. Shipping terms were F.O.B. destination. The cost of shipping was $ 100. Assume the perpetual inventory system.

Answer 1

The answer given below;

Step-by-step explanation:

Inventory Dr.$8,600

Accounts Payable Cr.$8,600

The cost of shipping $100 will be paid by the seller as FOB is F.O.B destination.Therefore no entry in books of purchaser is made for shipping cost.