Business, 15.10.2020 08:01 kirstennnash
The buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show your understanding of freight terms by selecting all of the correct statements below.
a. Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.
b. When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.
c. Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.
d. Terms FOB destination means that the seller is responsible for shipping costs.
d. When the shipping costs are the responsibility of the seller, then the Merchandise Inventory account is debited. Terms FOB shipping point means the seller of the goods is responsible for freight charges.
Answers: 3
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The buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show...
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