When a purchase order item with the "free delivery" indicator is posted to inventory, which general ledger accounts are posted?

When a purchase order item includes the "free delivery" indicator, it indicates that the associated delivery costs are not borne by the buyer but rather included in the negotiated purchase price. When this type of item is posted to inventory, the system primarily records the value of the inventory received against the inventory account.

In this context, the inventory account is credited to reflect the increase in inventory assets on the balance sheet. This is appropriate because the purchase does not incur separate delivery charges that would need to be accounted for in additional expense categories or other accounts. The correct approach aligns with the principles of accounting whereby assets are recorded at their total cost, and since there are no additional shipping expenses to add, only the inventory account is affected directly.

The other accounts listed would not be involved in this scenario due to the absence of separate costs associated with the delivery, meaning they do not get impacted when "free delivery" is indicated. Thus, the correct transaction reflects the acquisition of inventory alone, making the inventory account the sole account affected in this particular instance.