Freight-out and Freight-in
Illustrative Entry

 

6-6-X4

Purchases

 

8,000

 
  Freight-in  

1,500

 

            Cash    

1,500

            Accounts Payable    

8,000

  Purchased $8,000 of inventory, terms F.O.B. shipping point, and paid the shipping freight bill of $1,500      
5-11-X4

Accounts Receivable

 

7,000

 
  Freight-out  

400

 

            Cash    

400

            Sales    

7,000

  Sold merchandise on account for $7,000, terms F.O.B. destination, and paid the freight bill of $400