October 30, 2016 admin

Freight—Service

Expenses

FREIGHT—SERVICE EXPENSE ACCOUNT
7771/7971

ACCOUNT EXPLANATION
Expense of freight, express, and postage on incoming and outgoing shipments of merchandise sold by the service department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Freight charges paid on incoming shipments of gasoline additives CD
    Freight—Service 7771
    Freight—Service—Quick Lane 7971
      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 and not to this account.
  • See also Account 7871, Freight—Body Shop.