Assuming a periodic inventory system, the journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid and added to the invoice is:

A. debit Accounts Receivable $965; credit Sales $965.
B. debit Purchases $965; credit Accounts Payable $965.
C. debit Purchases $900, debit Freight in $65; credit Accounts Payable $965.
D. debit Accounts Payable $965, debit Freight in $65; credit Purchases $900.


Answer: C

Business

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