What happens when merchandise is delivered FOB Destination? Multiple Choice The seller pays the freight cost....
What happens when merchandise is delivered FOB Destination?
Multiple Choice
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The seller pays the freight cost.
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The seller pays the freight cost and records an expense.
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The seller records transportation-out expense.
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The buyer pays the freight cost.
Homework Answers
The correct option is “The seller pays the freight cost and records an expense”
FOB means Freight On Board. FOB is a shipping term that means that the legal title to the goods remains with the seller until the goods reach the location of the buyer.
The FOB destination outlines terms indicating that the seller will incur the shipping/delivery expense to get the goods to the destination.
FOB destination – means seller is responsible for paying the shipping charges and they are recorded as the expense transportation out. Buyer does not make any entry.
Hence, the correct option is The seller pays the freight cost and records an expense
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What happens when merchandise is delivered FOB Destination?
Multiple Choice
The seller pays the freight cost....
When goods are shipped FOB Destination and the seller pays the freight charges, the buyer a....
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
When merchandise is shipped FOB (free on board) Destination: Select one: O A. The buyer pays...
When merchandise is shipped FOB (free on board) Destination: Select one: O A. The buyer pays for the shipment. O B. Title passes to buyer when merchandise is shipped. OC. Title passes to buyer when merchandise is delivered. O D. None of the above
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller...
6) If goods are sold on terms FOB destination point, the A) buyer normally pays the...
6) If goods are sold on terms FOB destination point, the A) buyer normally pays the transportation costs B) seller normally pays the transportation costs C) buyer and the seller split the transportation costs D) shipping company bears the transportation cost
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller...
QUESTION 6 If goods in transit are shipped FOB destination the seller has legal title to...
QUESTION 6 If goods in transit are shipped FOB destination the seller has legal title to the goods until they are delivered. the buyer has legal title to the goods until they are delivered. the transportation company has legal title to the goods while the goods are in transit. no one has legal title to the goods until they are delivered.
When seller pays for shipping, the cost of freight is added to the cost of inventory...
When seller pays for shipping, the cost of freight is added to the cost of inventory by debiting Merchandise Inventory. Select one: True False
True-Pake F 1. FOB shipping point means the seller incurs the shipping costs. A company is...
True-Pake F 1. FOB shipping point means the seller incurs the shipping costs. A company is more likely to know the amount of inventory on hand at any time if it uses 2. the perpetual system than if it uses the periodic system. ue less cost of goods sold equals gross profit. of F 3. Net sales revenue T sales discounts and sales returns/allowances equals net sales. 5. A reduction given by the seller for sales discount by the seller....
eBook Show Me How Calculator Customer Merchandise Freight Paid by Seller Returns and Allowances a. $1,100...
eBook Show Me How Calculator Customer Merchandise Freight Paid by Seller Returns and Allowances a. $1,100 b. $400 1,300 C. $21,400 10,600 5,800 4,200 2,800 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 1/10, n/30 500 d. 200 600 e. a. $ 20,300 < b. S 9,514 ✓ C. $ 5,305 X d. $ e. S Feedback Check My Work FOB shipping point freight is the buyer's cost,...
Merchandise is purchased for $5,600 on September 2 subject to terms of 2/10, n/30, FOB destination....
Merchandise is purchased for $5,600 on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $150. What is the cost of the merchandise if paid on September 12, assuming the discount is taken? a.$5,488 b.$5,750 c.$5,862 d.$5,376
When merchandise is shipped FOB (free on board) Destination: Select one: O A. The buyer pays for the shipment. O B. Title passes to buyer when merchandise is shipped. OC. Title passes to buyer when merchandise is delivered. O D. None of the above
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller...
6) If goods are sold on terms FOB destination point, the A) buyer normally pays the transportation costs B) seller normally pays the transportation costs C) buyer and the seller split the transportation costs D) shipping company bears the transportation cost
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller...
QUESTION 6 If goods in transit are shipped FOB destination the seller has legal title to the goods until they are delivered. the buyer has legal title to the goods until they are delivered. the transportation company has legal title to the goods while the goods are in transit. no one has legal title to the goods until they are delivered.
When seller pays for shipping, the cost of freight is added to the cost of inventory by debiting Merchandise Inventory. Select one: True False
True-Pake F 1. FOB shipping point means the seller incurs the shipping costs. A company is more likely to know the amount of inventory on hand at any time if it uses 2. the perpetual system than if it uses the periodic system. ue less cost of goods sold equals gross profit. of F 3. Net sales revenue T sales discounts and sales returns/allowances equals net sales. 5. A reduction given by the seller for sales discount by the seller....
eBook Show Me How Calculator Customer Merchandise Freight Paid by Seller Returns and Allowances a. $1,100 b. $400 1,300 C. $21,400 10,600 5,800 4,200 2,800 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 1/10, n/30 500 d. 200 600 e. a. $ 20,300 < b. S 9,514 ✓ C. $ 5,305 X d. $ e. S Feedback Check My Work FOB shipping point freight is the buyer's cost,...
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