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Why does a merchandising company using a perpetual inventory system include freight out in their...

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Why does a merchandising company using a perpetual inventory system include freight out in their closing entries, and not freight in? O Freight out is a separate selling expense while freight in is included as part of the cost of inventory. Because freight out is included in the cost of goods sold while freight in is a separate selling expense. O Because freight out is an expense it is part of closing entries, while freight in is an equity item and so not part of closing entries. O Freight out has a debit balance while freight in has a credit balance making it not part of the closing entry process

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