I respectfully disagree. According to Retail Inventory per Financial Reporting, CPA Review edition the freight is added to the cost value of the inventory and not expensed. This increase in the cost value is included in the ‘Total Available for Sale’ section of the ‘Cost of Goods Sold’ statement.
Thus, the second entry would read:
Dr. Inventory $500
Cr. Cash $500
As a supporting observation, this cost would be directly added to the specific inventory line-items received and would not be reflected as a period cost expensed against operation net income.