If a company who sells goods charge freight to the customer on its invoice, I think it's recognized as freight revenue and then expense shipping cost under SGA. My question is that when do you recognize the freight revenue and cost? Assumption here is that the company is "not" in the freight business.
Freight Income
Answers
In Sales and CGS as separate items.
Anon
I agree with Wayne that the cost of freight is a COGS item, not SG&A (it is a trading item, not a selling/general/admin expense).
As for recognition, I think you need to recognize the freight revenue and cost together (and at the time that you earn the revenue-so look at your shipping terms). You should be able to accrue the freight cost if you are awaiting the 3rd party shipper's invoice.
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Accounting