Who is responsible for the freight cost when the terms are FOB destination? Please explain with full explanation.  a. the seller b. the buyer c. the customer d. either the buyer or the seller

Q: What is freight in on purchases?

A: Purchases are the transaction where in the buyer purchases goods and services from a seller by…

Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…

A: The invoice is made by seller based on different terms including discount, and other terms as FOB…

Q: When merchandise was shipped by the consignor to the consignee and freight on shipment was paid by…

A: When goods are sold all the costs incurred to bring the goods to the desirable location will also be…

Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…

A: A shipment term which indicates the obligation of either buyer or seller with regard to the goods…

Q: The return of goods by a customer ( Sales Return ) should be credited in the ledger account of ?

A: Sales return in accounting is used to refer the goods or item once purchased and returned to the…

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Q: Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the…

A: A)Revenue is recognized at the time of shipment when goods are shipped FOB destination-The given…

Q: Sales to Y Sales to others Cost of goods sold

A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…

Q: FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer…

A: Whenever business sells goods to the customer, then there can be two type of terms. One is FOB…

Q: FOB shipping point

A: This is also called the FOB origin. Under FOB Shipping point the title of goods transfers to the…

Q: Which one of the following statements best describes the purpose of a purchase order? A It is issued…

A: Purchase Order: A company before purchasing goods invite qoutation of goods from suppliers. When…

Q: What type of services can a freight forwarder provide? O Containerization and consolidation of…

A: Question 6. Freight forwarders offer a wide range of services such as warehousing, preparation and…

Q: Which of the following is reported as part of the operating expenses? Cost of sales…

A: The question is based on the concept of Business Accounting.

Q: Cost of goods to e: Price of goods to in Ocean freight insu

A: There are different terminologies in the international commercial market which defines the…

Q: For purposes of computing the MCIT, which will not form part of cost of goods sold for traders:…

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Q: What are the main differences between a perpetual system  and a periodic system? In your…

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Q: Provide one example of a transaction that affect  service business and  merchandise business.

A: Business refers to all those organization or company who engaged in any type of industrial,…

Q: The FOB term is used with an identified physical location to determine а. None of the options O b.…

A: FOB stands for Free on Board. This is a shipment term used to show that whether buyer or seller…

Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: The term "FOB" denotes * O free on board. O freight on board. free only (to) buyer. freight charge…

A: Option 1 Free on board, FOB stands for free on board

Q: What is the initial cost for transporting the goods as shown in the below table?

A: As question does not specify from which method to apply, SME will solve using North West Corner…

Q: Explain how negotiation between the supplying and buying units may be used to set transfer prices.…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?

A: (a)If the sale is made with the terms FOB shipping point, the goods' ownership is transferred at the…

Q: Explain the difference between freight in and freight out. Who pays for each? Who owns the goods…

A: Freight refers to the transportation cost paid on the goods. Freight in is the transportation cost…

Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…

A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…

Q: orp. owin Cost of purchases based on suppliers' invoic Trade discounts on purchases already deduc…

A: Solution: Before calculating the total cost of net purchases,For better understanding firstly we…

Q: The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping…

A: FOB destination stands for freight on board, is an incoterm which is used when there is trade…

Q: What is freight out, and how is it recorded by the seller?

A:

Q: In accounting for consignment sales, sales revenue and the related cost of goods sold should be…

A: Introduction:- Consignment arise when goods are sent by their owner to an agent who undertakes to…

Q: FOB SHIPPING POINT, who is the owner of goods in transit

A: The invoice made at the time of sale includes the invoice price, payment terms, discount terms, etc.…

Q: What are some inventory ordering costs? As defined here, are thesecosts fixed or variable?

A: Inventory ordering cost can be define as the cost that is incurred by the firm during order…

Q: Which of the following costs would be considered inventoriable? Freight-In Warehousing Costs = No =…

A:

Q: Which of the following is not a characteristic of FOB Destination?A. The seller pays for shipping.B.…

A: FOB (Freight on Board) Destination seems to be a shipping terminology that signifies the seller…

Q: etc. The return of such goods to the suppliers is recorded in the

A: Option a is wrong because one among the options is correct. Option b is wrong because returns inward…

Q: What is the difference in the operating cycle of a service provider and a merchandiser?

A: Operating cycle is defined as the amount of time the company requires to use its cash in order to…

Q: The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the…

A: The invoice is prepared at the time of sale of goods on credit. The invoice details about the…

Q: It is used to who is responsible for paying shipping and when the title of the goods passes from…

A: The goods and services are usually exchanged between two parties. One is seller and the other is…

Q: Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a…

A: The freight cost  is paid by the seller till the goods have reached their destination and then the…

Q: In deciding whether to accept a special order, freight charges paid by the buyer are relevant.  a)…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: The FOB term is used with an identified physical location to determine a. None of the options b. The…

A: Solution: The FOB term is used with an identified  physical location to determine "Both the…

Q: Buyers negotiate purchase contracts with suppliers. What type of shipping terms should a buyer…

A: Whenever buyers purchase something from sellers, then various types of contracts can be entered.…

Q: What are some specific inventory carrying costs? As defined here,are these costs fixed or variable?

A: Examples embrace cash spent on feat product, interest paid on a procurement, interest lost once…

Q: If the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…