In deciding whether to accept a special order, freight charges paid by the seller are relevant. True False
Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…
A: The invoice is made by seller based on different terms including discount, and other terms as FOB…
Q: When merchandise was shipped by the consignor to the consignee and freight on shipment was paid by…
A: When goods are sold all the costs incurred to bring the goods to the desirable location will also be…
Q: Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will…
A: A shipment term which indicates the obligation of either buyer or seller with regard to the goods…
Q: Which one of the following statements best describes the purpose of a goods despatched note? A It is…
A: The goods dispatch note is prepared by seller, so as to keep the record of goods being dispatched.
Q: As a general rule, the buyer has the right to examine the goods before accepting them. The following…
A: As a general rule, the buyer has the right to examine the goods before accepting them. The following…
Q: Receivables are amounts due from others that arise from the sale of goods or services. Select one:…
A: Accounts receivables represents the amount due to firm for the goods or services sold on credit.…
Q: Which of the following statements concerning internal control procedures for merchandise sales is…
A: Internal control procedures for the sale of merchandise is important and it must include the…
Q: What is difference between accounting for a long-term contract and accounting for a more normal sale…
A: Sale Revenue is recognized when the goods are actually dispatched and delivered to the customer. In…
Q: Which is not correct? The sale of VAT registrable persons are not subject to VAT and input VAT…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: Which of the following conditions would violate the revenue recognition principle? Revenue is…
A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…
Q: An item must possess two characteristics to be classified as inven tory by a merchandiser. What are…
A: The item must satisfy two characteristics to be classified as an inventory by a merchandiser. 1.…
Q: FOB shipping point
A: This is also called the FOB origin. Under FOB Shipping point the title of goods transfers to the…
Q: Which one of the following statements best describes the purpose of a purchase order? A It is issued…
A: Purchase Order: A company before purchasing goods invite qoutation of goods from suppliers. When…
Q: What type of services can a freight forwarder provide? O Containerization and consolidation of…
A: Question 6. Freight forwarders offer a wide range of services such as warehousing, preparation and…
Q: Trade discounts sometimes are taken on freight. Group of answer choices True False
A:
Q: Who is the owner of goods on consignment? (Please give full explanation and please avoid…
A: In the consignment basis goods are sent by the consignor to the consignee to sell the goods and in…
Q: Which of the following statements is NOT true
A: Answer: Option c.
Q: For purposes of computing the MCIT, which will not form part of cost of goods sold for traders:…
A: MCIT is minimum corporate income tax, which is being payable by the domestic companies. The rate…
Q: If a customer agrees to retain merchandise that is defective because the seller is willing to reduce…
A: A discount is a reduction in list price of a product as a normal business practice or due to early…
Q: n records pur
A: Invoice-: An invoice is simply a time-stamped marketable paper that itemizes and documents an…
Q: The FOB term is used with an identified physical location to determine а. None of the options O b.…
A: FOB stands for Free on Board. This is a shipment term used to show that whether buyer or seller…
Q: Explain how the accounting for merchandise purchases and sales is different between accounting under…
A:
Q: a. Explain Freight prepaid.
A: Introduction:- Freight means any compensation paid for the transportation of goods. which means any…
Q: The term FOB shipping point means that the ownership of the goods is vested on the buyer upon…
A: Free on Board(FOB) means that the buyer will get ownership of the goods that they have purchased…
Q: This is a situation where the seller actually paid the freight charges but is not legally…
A: FOB Destination, Freight Collect: If the products are sent FOB destination, the customer is…
Q: Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?
A: (a)If the sale is made with the terms FOB shipping point, the goods' ownership is transferred at the…
Q: Explain the difference between freight in and freight out. Who pays for each? Who owns the goods…
A: Freight refers to the transportation cost paid on the goods. Freight in is the transportation cost…
Q: What determines the cost of the parcels service?
A: As anybody in the cargo business knows, delivering rates change generally. Despite the fact that…
Q: The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping…
A: FOB destination stands for freight on board, is an incoterm which is used when there is trade…
Q: The return of defective merchandise decreases the amount of receivables from the customner. * True O…
A: Account receivable is the amount of which is owned from the customer for the credit sales made to…
Q: What is freight out, and how is it recorded by the seller?
A:
Q: Where there is evidence that the utility of inventory goods, as part of their disposal in the…
A:
Q: The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the…
A: The invoice is prepared at the time of sale of goods on credit. The invoice details about the…
Q: In which of the following scenario will the supplier be issuing a credit memo? Granting of…
A: In the case of defective merchandise the buyer may return the goods and in lieu of that supplier…
Q: Bill-and-hold transactions occur when the seller records a sale but the goods or services have not…
A: Bill and hold transaction refers to the sales transaction and arrangements in which the seller bills…
Q: Discuss the treatment of imported goods for (a) Transit and (b) Transshipment, in terms of liability…
A: The fee levied on commodities when they are carried across international boundaries is known as…
Q: In deciding whether to accept a special order, freight charges paid by the buyer are relevant. a)…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: The FOB term is used with an identified physical location to determine a. None of the options b. The…
A: Solution: The FOB term is used with an identified physical location to determine "Both the…
Q: Is a customer’s right to return merchandise a performance obligation of the seller? How should…
A: Right to return: Right to return refers to the rights that are given by the seller when customer…
Q: The return of defective merchandise increases the amount to be received from the customer. True…
A: The return of defective merchandise will decreases the value of amount that is to be received from…
Q: determination of net cost of purchases would include addition of transportation out.
A: Transportation out represents the cost incurred by the seller in order to ship the goods to the…
Q: What is the most common constraint faced by merchandisers?
A: Most common constraints faced by merchandisers are: Limited Display Space: Small stores find it…
Q: Who is responsible for the freight cost when the terms are FOB destination? Please explain with full…
A: FOB: FOB means "Free on Board", also known as "Freight on Board". It is important to decide who is…
![In deciding whether to accept a special order, freight charges paid by the seller are relevant.
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e3f85c5-6348-4269-8ac9-5c09cc808a67%2F839db3e9-3258-4e95-846e-947f09143e9d%2F24dr9zb_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- If 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 freightIn deciding whether to accept a special order, freight charges paid by the buyer are relevant. a) True b) FalseWho 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
- What is freight out, and how is it recorded by the seller?If 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.a. Explain Freight prepaid. Please avoid plagiarism. Thank you.
- Trade discounts sometimes are taken on freight. Group of answer choices True FalseWhich of the following statements regarding freight costs is true? a. FOB destination means that transportation charges are paid by the buyer. Ob. Under FOB shipping point, the buyer owns the inventory as soon as it is shipped and should count it in inventory. c. When the terms are FOB shipping point, the freight-in account is not used in recording the purchase. Od. Under FOB destination, the buyer owns the inventory as soon as it is shipped and should count it in inventory.When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon receipt of the order?
- 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.The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping point, freight prepaid B. FOB shipping point, freight collect C. FOB destination, freight prepaid D. FOB destination, freight collectIf a purchaser using a perpetual system agrees to freight terms of FOB shipping point, then the carrier will bear the freight cost. ● Inventory account will be increased. O O O seller will bear the freight cost. Inventory account will not be affected.
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)