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

Calculate the gross margin percentage, Q. Calculate the gross margin percen...

Q. Calculate the gross margin percentage? Calculate the gross margin percentage by using the following formula Grossmargin percentage = Grossmargin/Net sales To show th

Limitations of ratio analysis, Limitations of Ratio Analysis :  In spit...

Limitations of Ratio Analysis :  In spite of the a variety of uses of ratio analysis, it go through from certain limitations, some of which are as under; 1.    Limited use

Accounting error, the books of deven verma could not be tallied.the account...

the books of deven verma could not be tallied.the accountant transferred the difference of Rs.1270 in the suspense account on the debit side the following mistakes were found later

Company law, I want a company law assignment

I want a company law assignment

Consistency concept, Consistency Concept In practice, there are some m...

Consistency Concept In practice, there are some manners to record an event or a transaction in the books of account. For illustration, the trade discount on raw material purch

Explain what is brs?, BRS - Bank Reconciliation Statement A bank recon...

BRS - Bank Reconciliation Statement A bank reconciliation statement is a declaration organized by organizations to reconcile the balance of cash at bank in a company's own rec

Probability, he chairperson of the accounting department has three summer ...

he chairperson of the accounting department has three summer courses available: Accounting 201, Accounting 202, and Accounting 305. Twelve faculty members are available for assign

Ryan''s express has total credit sales, Ryan's Express has total credit sal...

Ryan's Express has total credit sales for the year of $178,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on Decemb

Seasonality in sales, Q. Seasonality in sales? Based upon its operating...

Q. Seasonality in sales? Based upon its operating record the company believes that its business is seasonal. Excluding the result of net sales, new store openings and earnings

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