When goods are shipped FOB Destination and the seller pays the freight charges, the buyer
a. |
adds the freight to the cost of the merchandise |
|
b. |
reimburses the seller |
|
c. |
does not take a discount |
|
d. |
makes no journal entry for the freight |
Answer :
Freight on Board (FOB) destination means the seller who is selling the goods are responsible for the freight charges and buyer has no responsibility to pay or to record anything related to it.
Therefore,
When goods are shipped FOB Destination and the seller pays the freight charges, the buyer makes no journal entry for the freight.
Option (d) is the correct Option.
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