makes no journal entry for the transportation
As per CPT incoterm, the destination terminal charges will be paid by the seller. In CFR, seller will be responsible for till payment of carriage charges, the rest buyer is responsible
DAT - Delivered at Terminal (named terminal at port or place of destination)Seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up to the point that the goods are unloaded at the terminal.DAP - Delivered at Place (named place of destination)Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.DDP - Delivered Duty Paid (named place of destination)Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. This term places the maximum obligations on the seller and minimum obligations on the buyer.
True
Buyer is a consumer Seller is a Distributor
A seller's concession is something the seller gives or gives up in order to make the sale. Therefore the seller's profit is reduced. However, seller's concessions are often used as a selling tool in a buyer's market. Many first time buyers need some seller's concessions in order to purchase the property. It depends on how much you want to sell. If you can afford to hold on to the property and do not need a sale at present, you can wait until the seller's market improves.
Journal entry in the books of the buyer: [Debit] Goods Purchased xxxx [Credit] Cash/bank xxxx As buyer has not paid the freight charges, he will only record the transaction with original goods purchased amount.
FOB
Freight on Destination (FOD)
As per CPT incoterm, the destination terminal charges will be paid by the seller. In CFR, seller will be responsible for till payment of carriage charges, the rest buyer is responsible
The Business Dictionary defines CPT, or Carriage Paid To, as a term of sale. The seller provides the CPT, which includes all shipping charges necessary for delivery of the item shipped to the destination named on the CPT. Insurance costs are not included in a CPT.
Seller retains legal title until the goods have reached the destination (wherein the risks and rewards and officially transferred to the buyer and thus becomes the buyer's inventory).
CNF is when the seller pays for all freight charges to destination port, after that the buy pays all costs for clearance customs duties and transportCIF is when the seller pays for all freight charges to the destination port, after that the buy pays all costs for clearance customs duties and transport, but it contain compulsory sea insurance.
FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
FOB (Freight On Board) Destination and FOB Shipping specifies whether the buyer or seller owns the goods, and therefore, who pays for the shipping and includes the items in their inventory. FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
FOB stands for Free on Board. It means that the buyer determines how the item is shipped and the seller must oblige and get it there. CIF stands for Cost, Insurance and Freight. This means the seller must arrange for transportation and provide papers to the buyer.
FOB is an abbreviation for Free On Board. The term FOB (often seen as f.o.b.) is commonly used when shipping goods, to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer. FOB shipping is the term used when the ownership/liability of goods passes from the seller to the buyer at the time the goods cross the shipping point to be delivered. FOB destination designates that the seller is responsible for the goods until the buyer takes possession. This is important in determining who is responsible for lost or damaged goods when in transit from the seller to the buyer. The buyer is responsible when shipped FOB shipping and the seller is responsible if shipped FOB destination. CAP, or customer arranged pickup, is used to denote that the buyer will arrange a carrier of their choice to pick the goods up and the liability for any damage or loss belongs to the buyer.
Terminal handling charges (THC) are effectively charges collected by shipping lines to recover from the shippers the cost of paying the container terminals for the loading or unloading of the containers and other related costs borne by the shipping lines at the port of shipment or destination. For containers shipped on an FOB (Free-On-Board) terms, which specifies which party (buyer or seller) pays for which shipment and loading costs, and/or where responsibility for the goods is transferred. The shippers at the origin port of shipment are responsible for paying the THC at the port of loading. This is defined as the Origin THC. The consignees, or buyers of the cargo are responsible for paying the freight rate and the THC (or equivalent) on the discharge port of destination, known as the destination THC.