What is the journal entry for the transaction: Sold goods on credit $480 and freight charge of $20?

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  • 6 years ago
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    Dr Accounts Receivable ... $480

    Dr Freight ....... .............. ..... $20

    Cr sales ................. .............................. $500

    *(Record the cost of freight or delivery to get goods to your customers as freight-out. Freight-out is considered an expense. These amounts should be debited to an expense account.)

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    *How you record freight charges in your financial statements depends on why you incurred the charges. Freight charges may be incurred for delivery of goods or products received, products delivered from you to your customers or for the delivery of a plant asset. You may also collect freight charges from your customers for delivery of products purchased. Each of these situations requires a different entry to record freight charges.

    Record the cost of freight or delivery to get goods to your customers as freight-out. Freight-out is considered an expense. These amounts should be debited to an expense account and credited to cash or accounts payable.

    Read more: http://www.ehow.com/how_8258560_record-freight-cha... .

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