The Raw Materials Inventory account isA) a subsidiary account.B) debited for invoice costs and freight costs chargeable to the purchaser.C) debited for purchase discounts taken.D) debited for purchase returns and allowances.

Question

The Raw Materials Inventory account isA)  a subsidiary account.B)  debited for invoice costs and freight costs chargeable to the purchaser.C)  debited for purchase discounts taken.D)  debited for purchase returns and allowances.

Corner Kickz · Accepted Answer

Final Answer : B, Explanation :  The Raw Materials Inventory account is debited for invoice costs and freight costs chargeable to the purchaser. This is because these costs are directly related to the purchase of the raw materials, and as such they are included in the overall cost of the inventory. Whereas, subsidiary accounts are accounts that are used to keep track of specific types of transactions within a larger account, purchase discounts taken and purchase returns and allowances are transactions that occur after the initial purchase of the raw materials and as such they are not directly related to the Raw Materials Inventory account.

The Raw Materials Inventory account is

A) a subsidiary account.
B) debited for invoice costs and freight costs chargeable to the purchaser.
C) debited for purchase discounts taken.
D) debited for purchase returns and allowances.

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