Explain fob shipping point freight collect, Accounting Basics

Assignment Help:

Q. Explain FOB shipping point freight collect?

FOB shipping point freight collect - Buyer both initially pays and incurs the freight chargers. The proper party (buyer) paid the shipment. The buyer debits Transportation-In as well as credits Cash.

FOB destination freight prepaid - Seller both initially pays and incurs the freight charges. The proper party (seller) paid the shipment. The seller debits Delivery Expense as well as credits Cash.

FOB shipping point freight prepaid - Buyer incurs the freight chargers as well as seller initially pays the freight charges. Buyer should reimburse seller for freight charges. The seller debits Accounts Receivable as well as credits Cash upon paying the freight. The buyer debits Transportation-In in addition to credits Accounts Payable when informed of the freight charges.


Related Discussions:- Explain fob shipping point freight collect

Taxation law, Ken, a resident, is a handyman who contracts with people to d...

Ken, a resident, is a handyman who contracts with people to do a variety of jobs including repairing fences, fixing household items and small painting jobs. As part of this work, K

Detailed steps for completing the work sheet, Q. Detailed steps for complet...

Q. Detailed steps for completing the work sheet ? Accountants use these preliminary steps in preparing the work sheet. The following segments describe the detailed steps for com

Bonds issued giving the holder the option of exchanging, Bonds issued givin...

Bonds issued giving the holder the option of exchanging the bonds for capital stock of the corporation are called

Define the term - liabilities, Define the term - LIABILITIES Liabilitie...

Define the term - LIABILITIES Liabilities are debts owed by business. Paying cash is generally not possible or convenient, so businesses purchase services and goods on credit.

Quickbooks help, I need the answers to the following questions in Quickbook...

I need the answers to the following questions in Quickbooks 2012, 1-write dividend checks, 2- sell fixed assets, 3-update the asset tracking report, 4-pay sales taxes and payrol

Benefits of purchases discounts, Benefits of Purchases Discounts Purch...

Benefits of Purchases Discounts Purchases Discounts account is used to record discounts given for prompt payment. To prove ACCOUNTS PAYABLE LEDGER , you will look at bala

Explain about accrued liabilities, Q. Explain about Accrued liabilities? ...

Q. Explain about Accrued liabilities? Accrued liabilities are liabilities not so far recorded at the end of an accounting period. They represent responsibility to make payments

Peachtree accounting, what are the options of setting up companies chart of...

what are the options of setting up companies chart of account

Uses of accounting, uses of accounting as a software enginner

uses of accounting as a software enginner

Explain merchandise in transit, Q. Explain Merchandise in transit? Mer...

Q. Explain Merchandise in transit? Merchandise in transit is merchandise in the hands of a shipment company on the date of a physical inventory. As stated above buyers should

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