Concept Introduction:
FOB shipping point:
FOB shipping point stands for Free On Board shipping point. It is a term for selling the merchandise, under which the delivery of goods is completed when the goods are shipped from the seller's place. The goods in transit belong to the buyer and buyer bears the cost of transportation after the shipping point. In case of FOB shipping point, the goods in transit should be included in the buyer's inventory.
FOB destination:
FOB destination stands for Free On Board destination. It is a term for selling the merchandise, under which the delivery of goods is completed when the goods are reached at buyer's destination. The goods in transit belong to the seller and seller bears the cost of transportation till the buyer's destination. In case of FOB destination, the goods in transit should be included in the seller inventory.
To Indicate:
The party who bears the freight cost under each of the method
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
Survey of Accounting (Accounting I)
- CSB Tech, Inc. Has a beta of... please answer the financial accounting questionarrow_forwardFinancial Accountingarrow_forwardCUMULATIVE COMPREHENSION PROBLEM: ECHO SYSTEMS (This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the Chapter 2 segment has not been completed, the assignment can begin at this point. You need to use the facts presented in Chapter 2. Because of its length, this problem is most easily solved if you use the Working Papers that accompany this book.) After the success of of its first two months,Mary Graham has decided to continue operatine Echo Systems. (The that occurred in these months are described in Chapter 2.) Before proceeding in December, Gra- e new accounts to the chart of accounts for the ledger: hamadds these ne No. 105 210 Account Accumulated Depreciation Office Equipment ... Accumulated Depreciation, Computer Equipment ............ Wages Payable...... Uneamed Computer Services Revenue..... Depreciation Expense, orice Equipment............. Depreciation Expense. Computer Equipment........... Insurance Expense Rent Expense Computer…arrow_forward
- International trade is a hot topic in the media today. Trade agreements and governmental policies of countries reflect the mindset of the country’s citizens and leaders. Critiques of free trade and trade reduction instruments are all a part of the vocabulary of trade as are trade agreements and other efforts to expand trade. Using the country you chose in the Module 2 Discussion for your company’s expansion plan, develop an overview of that country’s trade policies. Research current examples of its membership in trading blocs, important tariffs imposed on certain goods, subsidies the country uses to develop certain industries and import quotas on products from other countries, or anything else you feel is important for your overview of the country’s international trade position. End your post with a question to the class on one of your points.arrow_forwardWhat was the receivables turnover ratio of this general accounting question?arrow_forwardPlease give me true answer this financial accounting questionarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning