Question

IF GOODS IN TRANSIT ARE SHIPPED FOB DESTINATION, THE SELLER HAS LEGAL TITLE TO THE GOODS...

IF GOODS IN TRANSIT ARE SHIPPED FOB DESTINATION, THE SELLER HAS LEGAL TITLE TO THE GOODS UNTIL THEY ARE DELIVERED.
DISCUSS THE ACCURACY OF THIS STATEMENT AND GIVE EXPLANATION TO SUPPORT YOUR ARGUMENT.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

When the goods are sold at FOB destination, then the sale takes place when the goods are delivered at the buyer's destination.

Hence, the sellar has legal right to take back or to do any such action with the goods untill it is delivered.

The given statement is absolutely correct.

The risks and rewards from the sale of goods gets transferred only upon delivery at buyers destination under FOB destination contract.

The sale is the point of transfer, and such point of transfer determines the rights and obligations of parties.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Merchandise sold FOB destination indicates that: A.The full order is back-ordered to its destination. B.The seller...
Merchandise sold FOB destination indicates that: A.The full order is back-ordered to its destination. B.The seller holds the title until the merchandise is received at the buyer’s location. C.The buyer pays the freight to the destination. D.The buyer is responsible for delivery of the merchandise to the destination.
5. The journal entry to record a return of merchandise purchased on account under a perpetual...
5. The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit            a. Accounts Payable.            b. Purchase Returns and Allowances.            c.   Sales.            d. Merchandise Inventory. 6. Freight costs incurred by a seller on outgoing merchandise are debited to            a. the Cost of Goods Sold account.            b. the Sales Revenue account.            c.   an operating expense account.            d. the Sales Returns and Allowances account. 7. If...
_______ indicates that legal title to shipped goods passes to the buyer when they arrive at...
_______ indicates that legal title to shipped goods passes to the buyer when they arrive at the final destination so that the seller is responsible for transportation costs and any losses in transit. Question 33 options: Question 34 (2.5 points) Virginia Corporation began the month of August with 65 units, each costing $4. On August 2, it purchased 23 units for $5 each. On August 14, it purchased 12 units for $7 each. On August 24, the company sold 67...
Goods in transit are automatically included in inventory regardless of whether title has passed to the...
Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer. True or false
29. Gears Ltd's goods in transit at December 31 include (1) purchases made FOB destination, (2)...
29. Gears Ltd's goods in transit at December 31 include (1) purchases made FOB destination, (2) sales made FOB destination, (3) sales made FOB shipping point, and (4) purchases made FOB shipping point. Which items should be included in Gears Ldt’s inventory at December 31? Question 29 options: (1) and (3) (1) and (2) (2) and (3) (2) and (4) None of the above. 30. Fantastic Fashions has just completed its first quarter of operations. Assume that Fantastic Fashions adjusts...
1 In preparing its September 30 bank reconciliation, Frieda Corp. has the following information available: Balance...
1 In preparing its September 30 bank reconciliation, Frieda Corp. has the following information available: Balance per bank statement $34,510 Deposit in transit 4,650 Customer’s cheque returned NSF 325 Outstanding cheques 1,925 Bank service charges for August 40 Frieda’s correct cash balance at September 30 is $37,235. $34,510. $36,870. $36,910. 2 Braun Company factors $300,000 of accounts receivable with Schick Factors Inc. on a without recourse basis. The receivables records are transferred to Schick Factors, which takes over full responsibility...
ACC 308 Final Project Scenario Overview: You just began a position as a financial accountant at...
ACC 308 Final Project Scenario Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’s financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals. Refer to the data below and use the Final Project Workbook that includes the income statement, balance sheet, retained earnings...
i. True or False -Under the UCC, a contract for the sale of goods that includes...
i. True or False -Under the UCC, a contract for the sale of goods that includes open terms is void. T/F -Oral promises of fact made during the bargaining process are not express warranties. T/F -Warranties of title are assumed to exist in UCC transactions. T/F ii. Multiple choice -The requirements of a contract do not include: a. Consideration b. Practicality c. Legality d. Capacity -Defenses against the enforcement of a contract include: a. The lack of a party’s genuine...
Fancy Millwork has a factory that produces custom kitchen cabinets. It has multiple product lines. Materials...
Fancy Millwork has a factory that produces custom kitchen cabinets. It has multiple product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs. The company estimates that it will have 32,000 direct labor hours in total for the kitchen cabinets. The materials include $2,000 for the wood and other materials on a per job basis. It requires 40 hours of labor on average for a custom...
Question: Current situation Patterson has remained profitable, but its return on investment has been declining. The...
Question: Current situation Patterson has remained profitable, but its return on investment has been declining. The number of new products introduced has fallen as has the number of improvements to existing products. Whereas the firm once manufactured over two hundred products classified into six product categories, the firm now manufactures less than one hundred products in four categories. Only twelve of the products have current annual sales volumes exceeding $1 million. Further, many of the firm's once unique products now...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT