Question

1. using the term _______means that the buyer will pay the freight charges of the merchandise...

1. using the term _______means that the buyer will pay the freight charges of the merchandise to the buyers place of business

fob shipping point
fob destination*
trade discount
quantity discount

Business   Accounting   
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Homework Answers

Answer #2

ANSWER : FOB destination

explanation

1. FOB shipping point and FOB destination are the two different terms used when the sale made between the seller and buyer

2. FOB means Free On Board

3.FOB shipping point indicates that the sale occurred at the shipping point - at the sellers shipping dock.( means ownership of the goods transferred when the seller delivers the goods to the carrier)

4.FOB destination indicates that the sale will made and when it arrives to the buyers destination (means ownership of the goods transferred when the goods delivered to the destination to the buyers place of business ).

5.The buyer will pay the freight charges when he received the goods at his business place .

6. the buyer will record the transportation cost as freight in on his books

answered by: anonymous
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