A buyer purchases goods FOB shipping point and is billed separately by the carrier for $20 of freight. In which account does the buyer record the freight charge?

1. Under FOB shipping point, ownership passes at origin, so the buyer owns the goods in transit and bears the freight. 2. For the buyer, transportation becomes part of the cost of the inventory, so it is debited to Merchandise Inventory. 3. An expense account would be used by the seller under FOB destination, not by the buyer. 4. The inbound freight on a purchase is capitalised into inventory, not expensed as a delivery or transport charge. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §3.4 "Transportation Costs", p.100_