Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 6, Problem 7DQ
To determine
Describe who pay the freight charges at the time of (a) FOB shipping point, and (b) FOB destination.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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
Which freight is capitalizable or inventoriable cost by the consignor on the consigned goods under
consignment sales?
a. Freight from consignee to final consumers
b. Freight from consignor to consignee
c. Freight from consignee to consignor
d. All of the above
What is freight out, and how is it recorded by the seller?
Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1DQCh. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - What is the meaning of (a) 1/15, n/60; (b) n/30;...Ch. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Name four accounts that would normally appear in...Ch. 6 - Prob. 9DQCh. 6 - Assume that Audio Outfitter Inc. in Discussion...
Ch. 6 - Prob. 1PEACh. 6 - Prob. 1PEBCh. 6 - Halibut Company purchased merchandise on account...Ch. 6 - Hoffman Company purchased merchandise on account...Ch. 6 - Journalize the following merchandise transactions:...Ch. 6 - Journalize the following merchandise transactions:...Ch. 6 - Prob. 4PEACh. 6 - Journalize the following merchandise transactions:...Ch. 6 - Prob. 5PEACh. 6 - Prob. 5PEBCh. 6 - Prob. 6PEACh. 6 - Journalize the following merchandise transactions:...Ch. 6 - Assume the following data for Lusk Inc. before its...Ch. 6 - PE 6-7B Customer allowances and returns
Assume the...Ch. 6 - Financial statement data for years ending December...Ch. 6 - Financial statement data for years ending December...Ch. 6 - During the current year, merchandise is sold for...Ch. 6 - For a recent year, Best Buy reported sales of...Ch. 6 - Monet Paints Co. is a newly organized business...Ch. 6 - Prob. 4ECh. 6 - A retailer is considering the purchase of 500...Ch. 6 - The debits and credits for four related entries...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Journalize the entries for the following...Ch. 6 - After the amount due on a sale of 28,000, terms...Ch. 6 - The debits and credits for four related entries...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Showcase Co., a furniture wholesaler, sells...Ch. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Journalize the entries to record the following...Ch. 6 - What is the normal balance of the following...Ch. 6 - Paragon Tire Co.s perpetual inventory records...Ch. 6 - Assume the following data for Oshkosh Company...Ch. 6 - Zell Company had sales of 1,800,000 and related...Ch. 6 - For the fiscal year, sales were 191,350,000 and...Ch. 6 - The following expenses were incurred by a...Ch. 6 - One item is omitted in each of the following four...Ch. 6 - On March 31, 2019, the balances of the accounts...Ch. 6 - Identify the errors in the following income...Ch. 6 - Summary operating data for Custom Wire Tubing...Ch. 6 - From the following list, identify the accounts...Ch. 6 - Based on the data presented in Exercise 6-25,...Ch. 6 - On July 31, 2019, the balances of the accounts...Ch. 6 - The Home Depot reported the following data (in...Ch. 6 - Kroger Co., a national supermarket chain, reported...Ch. 6 - Complete the following table by indicating for (a)...Ch. 6 - The following selected transactions were completed...Ch. 6 - Prob. 35ECh. 6 - The following data were extracted from the...Ch. 6 - Prob. 37ECh. 6 - Based on the following data, determine the cost of...Ch. 6 - Identify the errors in the following schedule of...Ch. 6 - United Rug Company is a small rug retailer owned...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected transactions were completed...Ch. 6 - Prob. 3PACh. 6 - The following selected transactions were completed...Ch. 6 - The following selected accounts and their current...Ch. 6 - Selected accounts and related amounts for...Ch. 6 - Selected transactions for Capers Company during...Ch. 6 - Selected transactions for Babcock Company during...Ch. 6 - On December 31, 2019, the balances of the accounts...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following were selected from among the...Ch. 6 - The following selected transactions were completed...Ch. 6 - The following selected accounts and their current...Ch. 6 - Selected accounts and related amounts for Kanpur...Ch. 6 - Selected transactions for Niles Co. during March...Ch. 6 - Selected transactions for Essex Company during...Ch. 6 - On June 30, 2019, the balances of the accounts...Ch. 6 - Palisade Creek Co. is a merchandising business...Ch. 6 - Prob. 1CPCh. 6 - Prob. 2CPCh. 6 - Prob. 4CPCh. 6 - Prob. 5CPCh. 6 - Prob. 6CP
Knowledge Booster
Similar questions
- Which statement and where on the statement is freight-out recorded? Why is it recorded there?arrow_forwardWhich freight is capitalizable or inventoriable cost by the consignor on the consigned goods under consignment sales? Freight from consignor to consignee Freight from consignee to consignor Freight from consignee to final consumers All of the abovearrow_forwardExplain the implications relating to ownership when goods are: In Transit (FOB) Shipping Point In Transit (FOB) Destination On Consignmentarrow_forward
- Determine the amount to be paid or collected as may be the case, applying the freight terms, discounts and transportation arrangement. thank you!arrow_forwardFOB SHIPPING POINT, who is the owner of goods in transit?arrow_forwardDistinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will result in a debit to Inventory and which one will result in a debit to Freight expenses by the seller.arrow_forward
- Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result in a debit to Inventory by the purchaser and a debit to Freight-Out by the seller.arrow_forwardIf the seller assumes the entire cost of transportation, without any reimbursement from the buyer, the freight terms are considered ______________. a. FOB shipping point b. FOB destination c. Freight in d. Freight out e. FOB freightarrow_forwardWhich 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.arrow_forward
- Which of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer 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.arrow_forwardIt is used to who is responsible for paying shipping and when the title of the goods passes from seller to buyer: This term will be applicable to a. Discount term b. Credit terms c. Cash term d. Shipping termsarrow_forwardExplain the difference between freight in and freight out. Who pays for each? Who owns the goods while they are in transit? What type of account is freight in? What type of account is freight out?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College