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If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment the terms are stated as FOB destination True or False?
false
What is the arrangement between buyer and seller as to when payments for merchandise are to be made?
Credit Terms
Freight costs incurred by a seller on merchandise sold to customers will cause an increase in what?
selling price
Journal entry in financial accounting for purchase return?
Like sales discounts, sales returns and allowances reduce sales revenue. They also result in additional shipping and other expenses. Since managers often want to know the amount of returns and allowances for a period, the seller records sales returns and allowances in a separate account. Sales Returns and allowances is a "Contra (or offsetting) asset account to Sales. The seller debits Sales Returns and Allowances for the amount of the return or allowance. If the original sale was on account, the seller credits Accounts Receivable. Since merchandise inventory is kept up to date in a perpetual system, the seller adds the cost of the returned merchandise to the merchandise inventory account. The seller must also credit the cost of returned merchandise to the cost of merchandise sold account, since this account was debited when the original sale was made. What if the buyer pays cash and then later returns the merchandise. In this case the seller may issue a credit and apply it against other accounts receivables owed by the buyer, or the cash may be refunded. If the credit is applied against the buyer's other receivables, the seller records entries similar to those preceding. If cash is refunded for merchandise or for allowances, the seller debits sales returns and allowances and credits cash.
When merchandise is returned under the perpetual inventory system the buyer would credit a. Accounts Payable b. Merchandise Inventory c. Purchases Returns and Allowances...?
The Buyer would likely perform the following transaction: DR- Account Receivable CR - Merchandise Inventory The Buyer would probably debit CASH if they receive CASH from the Seller instead of having to WAIT on it. The Merchandise Seller would perform the following transaction: DR - Merchandise Inventory CR - Accounts Payable, OR CASH
If buyer pays the freight cost of delivering merchandise what is the delivery term?
Free On Board Destination (FOB Destination). This means that the seller pays the the freight costs from the shipping point to the buyer's final destination.
Who is the leading seller of merchandise in the NHL?
I believe the leading seller of merchandise is Washington Capitals captin Alexander Ovechkin
Which term indicates that merchandise is free of transportation charges to the buyer?
"Free on Board (FOB) destination" indicates that merchandise is free of transportation charges to the buyer. This means that the seller is responsible for the shipping costs and risk of loss until the goods reach the buyer's specified location.
How does eBay car delivery work?
eBay car delivery works by allowing sellers to arrange for a third-party transportation service to deliver the vehicle to the buyer's location. The buyer pays for the delivery service, and the seller coordinates the logistics.
Is eBay responsible for delivering the package on time?
No. However, if you have not received an item within the specified delivery time, you can contact the seller for resolution, and E-bay has a procedure set up.
Inventory shortage is recorded when?
merchandise is returned to seller
What does CIF and CNF mean in shipping terms?
CIF m mean is: the seller pay the Cost, insurance and freight to distance port. CIF means the buyer insures the goods for the maritime phase of the voyage, the shipper/seller will insure the merchandise. In this arrangement, the seller usually chooses the forwarder. "Delivery" as above, is accomplished at the port of destination.
Is closeout merchandise generally a good bargain?
For the most part a closeout merchandise is generally a good bargain because of the need for the merchandise to be sold. The seller usually puts the merchandise at prices that can't be beat.
If the ownership of merchandise passes to the buyer when the seller delivers the merchandise for shipment the terms are stated as FOB destination True or False?
false
What is the arrangement between buyer and seller as to when payments for merchandise are to be made?
Credit Terms
Was landed duty paid ever an incoterm?
No, "landed duty paid" is not an Incoterm. It refers to a pricing term where the seller is responsible for all costs, including duties, taxes, and transportation, up to the destination location. "Delivered Duty Paid" (DDP) is an Incoterm that is similar but covers additional responsibilities such as unloading the goods at the destination.
What If FRC in shipping?
If FRC (Free Carrier) is used in shipping, the seller is responsible for delivering the goods to the carrier nominated by the buyer at the seller's location. The risk transfers from the seller to the buyer once the goods are handed over to the carrier. It is important to clearly define the delivery point and carrier in the sales contract to avoid any confusion or disputes during the shipping process.
