How to allocate shipping charges.
Depending on the purchased quantity I get, the shipping charge varies, and wondering which account is better to enter this information.
Example:
I purchased clothing ($230) from my regular vendor and sold it to my customer. The vendor charged me the shipping cost of $20.
if I'm selling clothes that fall in the COGS account, the shipping cost would be expensive or COGS? I'd think COGS.
Now if I'm purchasing items, that are expenses, like office supplies, and getting charged shipping $15 then the shipping would be an expense?
Thanks in advance
