If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are a. n/30 FOB shipping point FOB destination d. consigned b. C.
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are a. n/30 FOB shipping point FOB destination d. consigned b. C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:If title to merchandise purchases passes to the buyer when the goods are shipped
from the seller, the terms are
de
a. n/30
h FOB shipping point
FOB destination
C.
d. consigned
when goods are shipped FOR destination and the seller pays the transportation
charges, the buyer
4.
a. journalizes a reduction for the cost of the merchandise.
b. journalizes a reimbursement to the seller.
does not take a discount.
C.
d.
makes no journal entry for the transportation.
nhandise on account FOB shipping point,
f the
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