perpetual inventory method

tiffles9 · #1 May 21, 2007, 05:54 PM

hello, could somebody please tell me which of the following statements is true under the perpetual inventory method?

- Freight-In is subtracted from the inventory account
- Freight-In is added to the inventory account
- Freight-In is used only with the perpertual inveontory method
-Freight-In is added to purchases in order to derive net purchases

jpstanimirovic · Jul 9, 2007, 06:43 PM

Quote:

Originally Posted by tiffles9

hello, could somebody please tell me which of the following statements is true under the perpetual inventory method?

- Freight-In is subtracted from the inventory account
- Freight-In is added to the inventory account
- Freight-In is used only with the perpertual inveontory method
-Freight-In is added to purchases in order to derive net purchases

Perpetual method means we ad the freight to the inventory



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