Question & Answer: If a customer pays the cost of shipping the goods to his or her address, then the business:…..

If a customer pays the cost of shipping the goods to his or her address, then the business:

Credits the merchandise inventory account
Does nothing – there is no cost to the business
Credits cash or accounts payable
Debits merchandise inventory

Expert Answer

 

customer pays the cost of shipping the goods to his or her address, then the business Debits merchandise inventory

So the option is D.Debits merchandise inventory

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