Explain about delivery expense, Accounting Basics

Assignment Help:

Q. Explain about delivery expense?

When shipping goods FOB destination freight prepaid the seller is accountable for and pays the freight bill. For the reason that the seller cannot bill a separate freight cost to the buyer the buyer shows no entry for freight on its books. The seller though has undoubtedly considered the freight cost in setting selling prices. The following entry is necessary on the seller's books

845_Explain about delivery expense.png

While the terms are FOB destination the seller records the freight costs as delivery expense this selling expense appears on the income statement with other selling expenses.


Related Discussions:- Explain about delivery expense

Comparability in accounting information, Q. Comparability in accounting inf...

Q. Comparability in accounting information? When comparability exists reported similarities and differences in financial information are real and not the result of differing ac

Accounting concepts and conventions, what is the implication of applying ac...

what is the implication of applying accounting concepts wrongly

Explain statement of retained earnings, Q. Explain Statement of retained ea...

Q. Explain Statement of retained earnings? The statement of retained earnings demonstrates the change in retained earnings between the beginning and end of a period e.g. a mont

What is depreciable amount, Q. What is depreciable amount? The dissimil...

Q. What is depreciable amount? The dissimilarity between assets's cost and its estimated residual value is an asset's depreciable amount. To persuade the matching principle the

Nos, the spelling of number is different than code

the spelling of number is different than code

Example of income statement of a merchandising firm, Q. Example of Income s...

Q. Example of Income statement of a merchandising firm? To recapitulate the more important relationships in the income statement of a merchandising firm in equation form -

Trial balance, preparing trial balance with balance method

preparing trial balance with balance method

Balance Sheet, can you show me a sample balance sheet with retained earning...

can you show me a sample balance sheet with retained earnings included?

Scott manufacturing co.''s static budget at 10, Scott Manufacturing Co.'s s...

Scott Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 un

Perpetual and periodic inventory method, Perpetual and Periodic inventory ...

Perpetual and Periodic inventory                                                                             a)  Describe the difference between the perpetual inventory method

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd