Question

need a slide show and the links to the information

Research the following: FOB destination FOB shipping point • Terms (ex. 1/10,n30) Assignment Requirements: Create and post a PowerPoint presentation • You must be creative by using pictures to describe how merchandise purchases flow through both an FOB destination and an FOB shipping point process. Make sure that the examples are clear enough that the viewer understands who owns the merchandise throughout the entire process. Provide an example of how Terms (ex. 1/15, n30) can save the purchaser money and why it is beneficial for a seller to offer Terms. Minimum of five slides Slides must include a title slide and a reference slide Must cite a minimum of two outside sources, not including the textbook

resarch fob destination and fob shipping point and make a 5 slide powerpoint with pictures

Answer 1

Below are the images to PPT, Since we cannot attach a PPT:-

NNext Page:

Freight Terms

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Introduction • The buyer and seller must agree on who is responsible for paying any freight costs and who bears the risk of loss during the transit for merchandising transactions. • FOB (free on board) point - the point of transfer • The point when ownership transfers from the seller to the buyer determines who pays transportation costs and other incidental costs of transit such as insurance. Page 2

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Introduction • The buyer is sometimes responsible for the shipping costs on purchases, often called Freight In costs. • The cost principle requires transportation costs incurred by the buyer be included as part of cost of purchased merchandise. • If seller is responsible for the shipping costs, transaction is recorded with a debit to Freight Out which is reported as a selling expense in the income statement. Page-3

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FOB Destination • Free on board (FOB) destination - means that the seller has agreed to pay all the shipping costs and the purchaser receives title to the goods at point of destination. • Under the term FOB destination, the shipping charges are debited to an account called Freight Out in the books of account of the seller. • Freight Out is a selling expense account listed among the operating expenses in the Income Statement. Page-4

FOB Shipping Point • Free on Board (FOB) Shipping Point - means that the purchaser has agreed to shoulder all the shipping costs and the purchaser receives title to the goods at shipping point. • Shipping charges under FOB Shipping Point are debited to an account called Freight In in the books of the buyer which is shown in the Income Statement as an addition to the cost of merchandise purchased. Page-5

The terms 2/15, n 30 means that the bill is due in 30 days but of paid within 15 days, a discount of 2% would be given. The buyer can benefit from the discount if paid within 15 days.

Kindly use the above only for reference to prepare your own project, which would make sure you have understood the concept.

Answer 2

need the slide show