Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 6E
Exercise 4-6A Understanding the freight terms FOB shipping point and FOB destination
Required
For each of the following events, indicate whether the freight terms are FOB destination or FOB shipping point.
- a. Sold merchandise and the buyer paid the freight costs.
- b. Purchased merchandise and the seller paid the freight costs.
- c. Sold merchandise and paid the freight costs.
- d. Purchased merchandise and paid the freight costs.
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Students have asked these similar questions
When the transportation charges are paid by the seller, merchandise is shipped
a. FOB destination
b. FOB shipping
c. FOB carrier
d. Prepaid
If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as
Da. FOB destination
Ob. FOB shipping point
Oc. FOB n/30
Od. FOB buyer
QUESTION 8
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
a. FOB shipping point
b. n/30
c. FOB destination
d. consigned
Chapter 3 Solutions
Survey Of Accounting
Ch. 3 - 1. Define merchandise inventory. What types of...Ch. 3 - 2. What is the difference between a product cost...Ch. 3 - 3. How is the cost of goods available for sale...Ch. 3 - 4. What portion of cost of goods available for...Ch. 3 - 5. When are period costs expensed? When are...Ch. 3 - 6. If PetCo had net sales of 600,000, goods...Ch. 3 - Prob. 7QCh. 3 - 8. What are the effects of the following types of...Ch. 3 - 9. Northern Merchandising Company sold inventory...Ch. 3 - 10. If goods are shipped FOB shipping point, which...
Ch. 3 - 11. Define transportation-in. Is it a product or a...Ch. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - 14. Dyer Department Store purchased goods with the...Ch. 3 - 15. Eastern Discount Stores incurred a 5,000 cash...Ch. 3 - 16. What is the purpose of giving credit terms to...Ch. 3 - Prob. 17QCh. 3 - 18. Ball Co. purchased inventory with a list price...Ch. 3 - 22. Explain the difference between purchase...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - 25. What is the advantage of using common size...Ch. 3 - 27. What is the purpose of preparing a schedule of...Ch. 3 - 28. Explain how the periodic inventory system...Ch. 3 - Prob. 25QCh. 3 - Exercise 3-1 Determining the cost of financing...Ch. 3 - Exercise 3-2 Comparing a merchandising company...Ch. 3 - Exercise 3-3 Effect of inventory transactions on...Ch. 3 - Exercise 3-4 Effect of inventory transactions on...Ch. 3 - Exercise 3-5 Recording inventory transactions in a...Ch. 3 - Exercise 4-6A Understanding the freight terms FOB...Ch. 3 - Exercise 3-7 Effect of purchase returns and...Ch. 3 - Exercise 3-8 Accounting for product costs:...Ch. 3 - Effect of product cost and period cost: Horizontal...Ch. 3 - Cash Discounts and Purchase Returns On April 6,...Ch. 3 - Exercise 4-9A Determining the effect of inventory...Ch. 3 - Inventory financing costs Bill Norman comes to you...Ch. 3 - Effect of shrinkage: Perpetual system Ho Designs...Ch. 3 - Comparing gross margin and gain on sale of land...Ch. 3 - Single-step and multistep income statements The...Ch. 3 - Prob. 16ECh. 3 - Effect of cash discounts on financial statements:...Ch. 3 - Using common size statements and ratios to make...Ch. 3 - Prob. 19ECh. 3 - Determining cost of goods sold: Periodic system...Ch. 3 - Identifying product and period costs Required...Ch. 3 - Problem 4-23A Identifying freight costs Required...Ch. 3 - Effect of purchase returns and allowances and...Ch. 3 - Preparing a schedule of cost of goods sold and...Ch. 3 - Prob. 25PCh. 3 - Comprehensive cycle problem: Perpetual system At...Ch. 3 - Prob. 27PCh. 3 - Comprehensive cycle problem: Periodic system...Ch. 3 - Prob. 1ATCCh. 3 - ATC 3-2 Group Exercise Multistep income statement...Ch. 3 - Prob. 3ATCCh. 3 - Prob. 4ATC
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- 3 In accounting for consignment sales, sales revenue and the related cost of goods sold should be recognized by the Group of answer choices Consignor when the goods are shipped to the consignee Consignee when cash is received from the customer Consignor when notification is received that the consignee has sold the goods Consignor when the goods are shipped to the third partyarrow_forwardIf 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 destinationarrow_forwardIf the sale includes the seller paying the freight costs and assuming the responsibility for merchandise until it is received by the buyer, the freight terms are said to be: A FOB shipping point. В FOB destination. (c) sales discount. D) trade discount.arrow_forward
- SLO-5.2. Using the term means that the buyer will pay the freight charges of the merchandise to the buyer's place of business. OFOB Shipping Point OFOB Destination OTrade Discount OQuantity Discountarrow_forwardFOB destination of a Merchandise Business means: a. Goods are placed free on board to the buyer's place of business. b. Seller is responsible for paying the freight charges. c. Buyer is responsible for paying the freight charges. d. Seller ships the goods to buyer destination without charge to the buyerarrow_forwardWhat happens when merchandise is delivered FOB shipping point? Multiple Choice O O The seller records transportation-out expense. O The buyer records transportation cost as an expense. O The buyer pays the freight cost. The seller pays the freight cost.arrow_forward
- The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the owner of the goods while in transit A. FOB Destination Point B. FOB Shipping Point C. Freight prepaid D. Freight collectarrow_forward46. Which of the following shipping terms wherein the buyer shoulder the freight on shipment of merchandise? O A. F.O.B Shipping Point B. F.O.B. Destination O c. c.O.D. Freight Collect O D. C.O.D. Freight Collectarrow_forward9. Which of the following is the correct computation for the cost of goods available for sale? a.Net Sales - Cost of Goods Sold b. Sales - Cost of Goods Sold c. Beginning Inventory + Net Purchases d. Net Purchases - Ending Inventory 10. This refers to the shipping cost necessary to bring inventory purchased from the seller to the premises of the company. a. Freight - In b. Freight - Out c. Delivery Expenses d. Travelling Expensesarrow_forward
- FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer is responsible for paying the freight charges. c. Seller is responsible for paying the freight charges. d. Goods are placed free on board to the buyer's place of business.arrow_forward8.When a product is sold on credit, which account should be debited for the seller? A.cash B.Inventory C.A/P D.A/Rarrow_forward7.Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account? a. Freight Expense b. Freight-Out c. Freight-In d. Inventoryarrow_forward
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