Is freight expense an expense?

Is freight expense an expense?

Usually, freight expenses are recorded as other “general expenses.” How the cost is recorded may depend on who is paying the freight cost and whether the cost is included in the asset’s value/price.

Is freight in an asset account?

Freight Costs as it relates to assets: If the freight is part of an asset’s cost, it is to be considered an extension of the asset’s overall value.

Why is freight in an asset?

If you see duty and freight as being wrapped up in the value of the goods it will be included as an asset along with the original purchase price. This increases your balance sheet and therefore the worth of the company.

Is freight out an asset?

Freight-out is considered a selling expense and is expensed when incurred. When a company hires a 3rd party transportation company to transport inventory to a customer, the company would debit freight-out expense (selling expense) and credit cash (cash outflow to pay shipping company).

Is freight in an expense or revenue?

Freight in: A freight in expense is the shipping cost associated with receiving goods from a manufacturer or supplier. Freight in is a common expense for stores, showrooms or manufacturers, as they source their materials from other places and add in this cost to the cost of receiving goods.