If NetSolutions purchases merchandise inventory and pays the shipping or freight costs, the shipping terms are called ___________________. Group of answer choices FOB (free on board) destination FOB (free on board) merchandise FOB (free on board) shipping FOB (free on board) sales

If NetSolutions purchases merchandise inventory and pays the shipping or freight costs, the shipping terms are called ___________________. Group of answer choices FOB (free on board) destination FOB (free on board) merchandise FOB (free on board) shipping FOB (free on board) sales

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3QY

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Question

If NetSolutions purchases merchandise inventory and pays the shipping or freight costs, the shipping terms are called ___________________.

Group of answer choices

FOB (free on board) destination

FOB (free on board) merchandise

FOB (free on board) shipping

FOB (free on board) sales

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SLO-5.2. Using the term means that the buyer will pay the freight charges of the merchandise to the buyer's place of business. OFOB Shipping Point OFOB Destination OTrade Discount OQuantity Discount
Freight on Board (FOB) shipping point requires that the seller pays the shipping cost.. True or False
Q-1: The following accounts are included in the ledger of David Company: Advertising expense Freight-in Inventory Purchases Purchase returns and allowances Sales Sales returns and allowances Which of the accounts would be included in calculating cost of goods sold?
If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as Da. FOB destination Ob. FOB shipping point Oc. FOB n/30 Od. FOB buyer
What happens when merchandise is delivered FOB shipping point? Multiple Choice O O The seller records transportation-out expense. O The buyer records transportation cost as an expense. O The buyer pays the freight cost. The seller pays the freight cost.
If NetSolutions (the buyer) purchases merchandise from a wholesale company or vendor (the seller) and the NetSolutions pays the transportation costs (freight/shipping terms--FOB Shipping), who owns the merchandise while the merchandise is in transit? Group of answer choices NetSolutions the vendor the trucking company No one (neither the buyer or the seller) until the merchandise is delivered.
Availabe Options Are: Sales Discount Credit Period Discount Period FOB Shipping Point FOB Destination Merchandise Inventory Gross Profit Purchases Discount
When the buyer pays the freight costs, the entry to record the payment under a perpetual inventory system would include a debit to _______. Question content area bottom Part 1 A. Freight In B. Inventory C. Purchases Discounts D. Delivery Expense
Goods in transit are included in a purchaser's inventory: Multiple Choice At any time during transit. When the goods are shipped FOB shipping point. When the supplier is responsible for freight charges. If the goods are shipped FOB destination. After the half-way point between the buyer and seller.
FOB destination of a Merchandise Business means: a. Goods are placed free on board to the buyer's place of business. b. Seller is responsible for paying the freight charges. c. Buyer is responsible for paying the freight charges. d. Seller ships the goods to buyer destination without charge to the buyer
If goods are sold on terms FOB shipping point, the ________. A. seller normally pays the transportation costs B. buyer normally pays the transportation costs C. shipping company bears the transportation cost D. buyer and the seller split the transportation costs
b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a merchandiser. FOB Term When does the title to the Who pays the goods transfer to the buyer? freight? Shipping Point Destination c) Journalize the following transaction for a merchandiser that uses the perpetual inventory system. Sold goods for cash of $1,200 and on account of $800. Total cost $1,500. Omit explanations.