College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 9, Problem 8QY
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 freight
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
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.
Who 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
Which 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.
Chapter 9 Solutions
College Accounting (Book Only): A Career Approach
Ch. 9 - Which of the following is true about the Sales...Ch. 9 - What is the accounts receivable ledger? a. A...Ch. 9 - Using the information contained in the accounts...Ch. 9 - Prob. 4QYCh. 9 - What does the 2 in 2/10, n/30 mean? a. Pay in 2...Ch. 9 - Prob. 6QYCh. 9 - The schedule of accounts payable lists each...Ch. 9 - If the seller assumes the entire cost of...Ch. 9 - Under the perpetual inventory system, how does the...Ch. 9 - Purchases on account of merchandise for resale...
Ch. 9 - What is the difference between a wholesale...Ch. 9 - For each of the following accounts, identify...Ch. 9 - Prob. 3DQCh. 9 - Why is an accounts receivable ledger or an...Ch. 9 - Why is it a good practice to post daily to the...Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Record the following transactions in general...Ch. 9 - Post the following entry to the general ledger and...Ch. 9 - Record the following transactions in general...Ch. 9 - Journalize the following transactions in general...Ch. 9 - Post the following entry to the general ledger and...Ch. 9 - Record the following transactions in general...Ch. 9 - Record the following transactions for a perpetual...Ch. 9 - Toby Company had the following sales transactions...Ch. 9 - Williams Corporation had the following purchases...Ch. 9 - Kelley Company has completed the following October...Ch. 9 - Bell Florists sells flowers on a retail basis....Ch. 9 - Berrys Pet Store records purchase transactions in...Ch. 9 - Shirleys Beauty Store records sales and purchase...Ch. 9 - The following transactions relate to Hawkins,...Ch. 9 - Gomez Company sells electrical supplies on a...Ch. 9 - Patterson Appliance uses a three-column purchases...Ch. 9 - Prob. 1PBCh. 9 - Lowerys Pet Depot records purchase transactions in...Ch. 9 - Mays Beauty Store records sales and purchase...Ch. 9 - The following transactions relate to Khan, Inc., a...Ch. 9 - Prob. 5PBCh. 9 - West Bicycle Shop uses a three-column purchases...Ch. 9 - Prob. 1ACh. 9 - You are the bookkeeper at a small merchandising...Ch. 9 - Following is a trial balance prepared just before...Ch. 9 - Sales and Purchases Ms. Valli of All About You Spa...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Disposal of assets. Answer the following questions. 1. A company has an inventory of 1,300 assorted parts for a...
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
BE1-7 Indicate which statement you would examine to find each of the following items: income statement (IS), ba...
Financial Accounting
What are assets limited as to use and how do they differ from restricted assets?
Accounting For Governmental & Nonprofit Entities
List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and p...
Auditing And Assurance Services
Determine the estimated cost of the work performed each week given the tasks—with their associated costs and sc...
Construction Accounting And Financial Management (4th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Which of the following is not a characteristic of FOB Destination? A. The seller pays for shipping. B. The seller owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.arrow_forwardWhich of the following is not a characteristic of FOB Shipping Point? A. The buyer pays for shipping. B. The buyer owns goods in transit. C. The point of transfer is when the goods leave the sellers place of business. D. The point of transfer is when the goods arrive at the buyers place of business.arrow_forwardFOB shipping point means that transportation charges are paid by the seller.arrow_forward
- If 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.arrow_forwardIf 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 buyerarrow_forwardThe 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 collectarrow_forward
- If goods are sold on terms FOB shipping point, the ________. A. seller normally pays the transportation costs B. buyer normally pays the transportation costs C. shipping company bears the transportation cost D. buyer and the seller split the transportation costsarrow_forwardIf the buyer is to pay the transportation costs of delivering the merchandise, delivery terms are stated as O A. FOB shipping point O B. FOB destination C. FOB shipping destination O D. FOB buyerarrow_forwardTrue or false 1. Net sales is equal to sales revenue plus sales returns and minus sales discounts 2. FOB shipping point means title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freightarrow_forward
- What 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_forward1.In consignment sales, what is the proper treatment of the consignment-related transportation cost paid by the consignor (1) upon shipment and (2) upon return of the consigned goods to the consignor? a. (1) inventory ; (2) inventory b. (1) expense ; (2) inventory c. (1) expense ; (2) expense d. (1) inventory ; (2) expensearrow_forwardDistinguish 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.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Chapter 6 Merchandise Inventory; Author: Vicki Stewart;https://www.youtube.com/watch?v=DnrcQLD2yKU;License: Standard YouTube License, CC-BY
Accounting for Merchandising Operations Recording Purchases of Merchandise; Author: Socrat Ghadban;https://www.youtube.com/watch?v=iQp5UoYpG20;License: Standard Youtube License