October 30, 2016 admin

Freight—Parts

Expenses

FREIGHT—PARTS EXPENSE ACCOUNT
7671

ACCOUNT EXPLANATION
Expense of freight, express, and postage on incoming and outgoing shipments of parts and other merchandise sold by the parts department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Freight charge paid on incoming shipment of batteries CD
    Freight—Parts 7671
      Cash in Bank—General 1001
             
  Postage paid on outgoing shipment of vehicle emblems CD
    Freight—Parts 7671
      Cash in Bank—General 1001
COMMENTS
  • Transportation charges on vehicles, freight costs on capital assets, and freight charges on non-inventory items should be charged to the account debited with the original purchase, not to this account.