Retail
Freight-In Capitalized into Inventory Cost
Adding inbound freight charges to the cost of delivered inventory.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Merchandise Inventory | Asset (+) | 800.00 | - |
| Cash / Accounts Payable (Freight) | Asset/Liability (-) | - | 800.00 |
💡 Accountant's Note
Under IAS 2, all costs to bring inventory to its present location must be included in its cost. Freight-in is capitalized into inventory, increasing COGS when the items are eventually sold.
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