According to the net method, freight costs should be included in the cost of inventory.
What is net pricing technique?
The supplier invoices are recorded using the "net price technique" after any applicable discounts have been subtracted from the total. The net price will be debited from the corresponding asset account or expenditure account in this entry, and the net price will be credited to accounts payable.
In the net price method of accounting, any discounts have been subtracted from the net price of a purchase. The gross price technique, which records the price before any discounts, can be replaced with the net price approach.
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