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