when goods are shipped fob destination and the seller pays the freight charges, the buyer

when goods are shipped fob destination and the seller pays the freight charges, the buyer.

when goods are shipped fob destination and the seller pays the freight charges, the buyer
when goods are shipped fob destination and the seller pays the freight charges, the buyer

when goods are shipped fob destination and the seller pays the freight charges, the buyer.

When items are sent FOB destination and the seller pays the freight costs, the buyer will journalize a decrease for the cost of the products, journalize a reimbursement to the seller, but will not receive a discount, and will not make any journal entry for the freight charges. Question 20 (Mandatory)

 

When products are transported FOB destination, the seller is responsible for paying for shipping costs.

transportation costs

transportation The buyer does not make any entries in the journal about transportation.

What account does business A debit for the transportation charges that are mentioned on the invoice when it buys items from company B under the conditions FOB shipping?

inventory of goods in stock

One kind of inventory approach is one that assumes the currently held stock is made up of the most recent purchases of individual items of product.

FIFO

The inventory technique is referred to as such when it is presumed that the sequence of the products sold begins with the most recent purchases and moves backwards to the previous purchases.

LIFO

Which technique of costing will result in the lowest cost of product supplied in the event that the market price of inventory is increasing over time (the cost of merchandise increases each time a firm buys merchandise)?

FIFO

Are you familiar with the list account financial statement close out for sales discounts?

contra revenue income statement
YES to wrap things up

Inventory of Goods for Sale

rise in liabilities on the asset balance sheet

Sales

The credit contributes to an increase in revenue on the income statement.

Net sales equation

Sales – Sales Discounts – Sales Returns

 

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