Returned $200 of the inventory that it had purchased because the inventory was damaged in transit. The freight company agreed to pay the return freight cost.
What IS the question? This merely looks like a statement.
Sra
To record the returned inventory and the associated costs, you will need to make entries in your accounting records. Here's how:
1. Record the return of inventory:
Debit: Accounts Payable or Cash (if you received a cash refund)
Credit: Inventory (to reduce the inventory value)
This entry reflects the decrease in inventory due to the damaged goods that were returned.
2. Record the reimbursement of freight costs:
Debit: Accounts Payable (to reduce the amount owed to the freight company)
Credit: Freight Expense (to offset the original expense)
This entry shows that the freight costs have been reimbursed and you no longer owe the freight company for the return shipment.
It's important to note that these transactions should be recorded based on the specific details mentioned in your question. If there are any additional factors or complexities, it is recommended to consult with an accountant or financial professional to ensure accurate recording.