It is used to record returns. This account has a normal credit balance and appears on the income statement in the Cost of Goods Sold section for a merchandising company. Freight-In: this is an expense account used to record the cost of freight shipped under F.O.B. shipping point.This account has a normal debit balance and appears on the income statement in the Cost of Goods Sold section for a merchandising company.ost of Goods Sold is an expense account shown on the income statement. It is important for the owner to use this account because it shows the cost of the inventory sold. Once Cost of Goods Sold is known, the owner can calculate gross margin.