XYZ Company hires third party to deliver goods to their customer on FOB destination, freight prepaid. On the books of XYZ Company, the entry for the freight under perpetual inventory system is  debit Finished Goods credit Accounts Receivable. debit Freight In, credit Accounts Receivable. debit Freight Out, credit Cash. debit Raw Materials, credit Accounts payable.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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XYZ Company hires third party to deliver goods to their customer on FOB destination, freight prepaid. On the books of XYZ Company, the entry for the freight under perpetual inventory system is 

debit Finished Goods credit Accounts Receivable.

debit Freight In, credit Accounts Receivable.

debit Freight Out, credit Cash.

debit Raw Materials, credit Accounts payable.

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