When inventory is shipped from the seller to the buyer with shipping terms of FOB destination: A. the seller has title to the goods while they are in transit. B. the buyer has title to the goods while they are in transit. C. title passes from the seller to the buyer when the goods leave the seller's shipping dock. D. the goods will be included in the inventory of the buyer while in transit.

When inventory is shipped from the seller to the buyer with shipping terms of FOB destination: A. the seller has title to the goods while they are in transit. B. the buyer has title to the goods while they are in transit. C. title passes from the seller to the buyer when the goods leave the seller's shipping dock. D. the goods will be included in the inventory of the buyer while in transit.

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Description: Questio nattached thnaks for the hlpel1p14phl1hporhpokhp15oy15kpho2th2tkohp2tkhp2othkp2ohk2pto When inventory is shipped from the seller to the buyer with shipping terms of FOB destination:A. the seller has title to the goods while they are in transi

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17MC: Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping....

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Identify items missing in determining cost of goods sold For (a) through (e), identify the items designated by X and Y. A. Purchases (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale X = Cost of inventory before estimated returns E. Cost of goods sold before estimated returns X = Cost of goods sold
Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.
Merchandise Accounting Merchandise Inventory Raw materials Work in process Finished goods Gross profit Net sales Sales revenue Cost of goods available for sale Cost of goods sold Perpetual system Periodic system Transportation-In Purchases FOB destination point FOB shipping point Gross profit ratio An adjunct account used to record freight costs paid by the buyer. A system in which the Inventory account is increased at the time of each purchase and decreased at the time of each sale. Terms that require the seller to pay for the cost of shipping the merchandise to the buyer. Terms that require the buyer to pay for the shipping costs. A system in which the Inventory account is updated only at the end of the period. Beginning inventory plus cost of goods purchased. An account used in a periodic inventory system to record acquisitions of merchandise. Sales revenue less sales returns and allowances and sales discounts. Cost of goods available for sale minus ending inventory. Gross profit divided by net sales. Net sales less cost of goods sold. The cost of unfinished products in a manufacturing company. The account wholesalers and retailers use to report inventory held for sale. The inventory of a manufacturer before the addition of any direct labor or manufacturing overhead. A manufacturers inventory that is complete and ready for sale. A representation of the inflow of assets from the sale of a product.