Homework Answers
Answer
As in FOB destination, Shipping cost is to be borned by the seller so Purchaser will not record Shipping Cost and it is mentioned in the question that Payment is made within a week i.e. 7 days.
It is mentioned that purchaser will receive discount of 3% if he/she makes payment within 7 days, so Inventory Cost will be 24,250 {25,000 - (25,000 * 3%)}
Inventory will be recorded at 24,250
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please help create the journal entry
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