Please fill out 1b #1a1bDate11/1/202311/2/2023Account Titles and ExplanationsMerchandise InventoryCash$2,500 cash purchase of merchandisePR103101$ Debit2,500$ Credit12,500 1TypeassetassetYou pay $100 for shipping insurance and $250 for transit costs for the goods purchased on 11/1/2019 (FOB Shipping)up/dnUD

Name: Please fill out 1b #1a1bDate11/1/202311/2/2023Account Titles and Expla
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Please fill out 1b #1a1bDate11/1/202311/2/2023Account Titles and ExplanationsMerchandise InventoryCash$2,500 cash purchase of merchandisePR103101$ Debit2,500$ Credit12,500 1TypeassetassetYou pay $100 for shipping insurance and $250 for transit costs

The cost of purchased inventory includes the in-transit insurance cost and freight paid under the term FOB shipping point. Under the term FOB shipping point the freight expense paid by the buyer to bring the inventory to a saleable place is added to the inventory cost.Working Note1: Determine the total amount to be credited to merchandise inventory as follows: -Therefore, the total amount to be credited to merchandise inventory is $350.DateAccount Titles and ExplanationPRDebitCreditTypeup/dn1b11/2/23Merchandise Inventory 103$350AssetUCash 101$350AssetD