vessel arrived in the port of Place X on Dec. 31, 2020 but the merchandise was unloaded from the vessel. On Jan. 2, 2021, Entity A pays the freight. Who has the ownership of the merchandise in transit on Dec. 31, 2020?A. The ownership has been transferred to the buyer. * A. The ownership has been transferred to the buyer. B. The ownership is retained by the seller. C. The merchandise is in transit. O D. No one owns the merchandise.

vessel arrived in the port of Place X on Dec. 31, 2020 but the merchandise was unloaded from the vessel. On Jan. 2, 2021, Entity A pays the freight. Who has the ownership of the merchandise in transit on Dec. 31, 2020?A. The ownership has been transferred to the buyer. * A. The ownership has been transferred to the buyer. B. The ownership is retained by the seller. C. The merchandise is in transit. O D. No one owns the merchandise.

Name: 47. Entity A shipped merchandise toEntity B on Dec. 31, 2020 under th
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Description: 47. Entity A shipped merchandise toEntity B on Dec. 31, 2020 under theshipping term: F.O.B. Destination. Thevessel arrived in the port of Place Xon Dec. 31, 2020 but the merchandisewas unloaded from the vessel. OnJan. 2, 2021, Entity A pays the frei

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2Q

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c. Shipping terms are F.O.B. shipping point, freight prepaid. llano paid the shipping costs on June 16 and added the P600 cost to the invoice sent to Pascual Pascual remitted P6,480 on June 24. Required: 1. Prepare the entries for llano to record the sale and freight payment, and the cash receipt. 2. Prepare the entries for Pascual to record the purchase (with shipping costs added to the invoice from llano) and the cash remittance.
If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are a. consigned b. n/30 c. FOB shipping point d. FOB destination
The Bockner Company shipped merchandise to Laetner Corporation on December 28, 2018. Laetner receivedthe shipment on January 3, 2019. December 31 is the fiscal year-end for both companies. The merchandisewas shipped f.o.b. shipping point. Explain the difference in the accounting treatment of the merchandise if theshipment had instead been designated f.o.b. destination.
What amount will be paid in full settlement of Invoice 22384, assuming that credit for returns and allowances was received prior to payment and that the invoice was paid within the discount period. Inv. No. Merchandise Freight Paid by Seller Freight Terms Returns and Allowances 22384 $4,500 $140 FOB Shipping Point,2/10, net 30 $1,200
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Credit forRefunds andAllowances a. $120,800 $1,300 FOB shipping point, 1/10, n/30 $20,100 b. 147,700 2,100 FOB destination, 2/10, n/30 11,400
Freight terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Returns and Allowances Merchandise Freight (Invoice a. $24,000 b. 31,500 (Invoice Amount) Paid by Seller $300 Freight Terms Amount) FOB destination, 1/10, n/30 $2,000 250 FOB shipping point, 2/10, n/30 2,500 a. b.
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise(Invoice Amount) FreightPaid by Seller Freight Terms Returns andAllowances(InvoiceAmount) a. $24,000 $300 FOB destination, 1/10, n/30 $2,000 b. 31,500 250 FOB shipping point, 2/10, n/30 2,500
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise(Invoice Amount) FreightPaid by Seller Freight Terms Returns andAllowances(InvoiceAmount) a. $24,000 $300 FOB destination, 1/10, n/30 $2,000 b. 31,500 250 FOB shipping point, 2/10, n/30 2,500 a. $ b. $ Feedback a & b. Under FOB shipping point, freight is paid by the buyer, while under FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase – Return – Discount) + applicable freight.
22. Paden Company purchased merchandise from Emmett Company with freight terms of FOB shipping point. The freight costs will be paid by the a. seller. b. buyer. c. transportation company. d. buyer and the seller.
Illustration: Goods in Transit ABC Co. purchased goods with invoice price of P1,000 on account on Dec. 27, 2019. The related shipping costs amounted to P10. The seller shipped the goods on Dec. 31, 2019. ABC Co. received the goods on Jan. 2, 2020 and settled the account on Jan. 5, 2020. Prepare journal entries under the following terms of purchase a. FOB shipping point, freight collect b. FOB destination, freight prepaid C. FOB shipping point, freight prepaid d. FOB destination, freight collect
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise(Invoice Amount) FreightPaid by Seller Freight Terms Returns andAllowances(InvoiceAmount) a. $24,000 300 FOB destination, 1/10, n/30 2000 b. 31,500 250 FOB shipping point 2/10, n/30 2500 a. $ b. $
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise FreightPaid by Seller Freight Terms Credit forRefunds andAllowances a. $58,600 $1,300 FOB destination, 1/10, n/30 $6,500 b. 73,100 600 FOB shipping point, 2/10, n/30 3,900 a. $fill in the blank 1 b. $fill in the blank 2