financial accounting two years ago

[blueheaven]

Hi friends, I took financial accounting two years ago and have forgotten a few things. My current accounting instructor asked our class if we knew the answers of the following questions; is shipping included in price paid? Is shipping ever considered an expense? How do we account for shipping in journal entries? Nobody could answer his questions so he made us search for the answers. Unfortunately I sold my Financial Accounting book and now I wish I had it but can't afford to buy it back. So can anybody answer the questions?

 

[TinkerBelleLuvr]

is shipping included in price paid?

If it is to RECEIVE your item that you are selling, it should be in your COGS (cost of goods sold.) Shipping to receive a capital item would be included in the cost of the capital item. If the shipping is in the cost of items shipped in, then the cost of said item INCLUDES the shipping.

Is shipping ever considered an expense?

mailing a package to a customer would be an expense.

Shipping is an expense as long as it has something to do with the business.