Rigby Company buys merchandise from Shoshone Company with an invoice cost of $100,000 and shipping terms of FOB shipping point. The freight costs amount to $1,000. Which of the following statements is TRUE?

A) Rigby Company will record freight-in costs of $1,000.
B) Shoshone Company will record freight-out costs of $1,000.
C) Shoshone Company will record freight-in costs of $1,000.
D) Rigby Company will have inventory cost of $10,000.

A

Business

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