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Horngren'S Financial And Managerial Accounting
Found in: Page 295

Short Answer

What account is debited when recording the payment of freight when using the periodic inventory system?

Freight-in account is debited when recording freight payments while using the periodic inventory system.

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Step by Step Solution

Meaning of Freight-in

Freight-in denotes the transportation or shipping cost incurred by a business to bring the goods into the business. Freight-in is considered a direct expense for the business entities and is added to the net cost of inventory.

Recording of freight-in payment

Freight-in payments are recorded by the business entities in their books of accounts by debiting the freight-in account.

Journal entry to record the freight-in payment is as follows:


Accounts and Explanation

Debit ($)

Credit ($)





(To record the payment of freight-in)

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