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What does a buyer do When goods are shipped FOB destination and the seller pays the transportation charges?
makes no journal entry for the transportation
What is the definition of FOB shipping point and FOB destination point?
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.
What does the term FOB mean export?
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.
What is the difference between FOB destination and FOB shipping point?
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.
What is the fob on a bill of lading?
FOB, or "Free on Board," on a bill of lading indicates the point at which ownership and liability for the goods transfer from the seller to the buyer. It specifies whether the seller or buyer is responsible for shipping costs and risks during transit. For instance, if the term is FOB shipping point, the buyer assumes responsibility once the goods leave the seller's location; if FOB destination, the seller retains responsibility until the goods reach the buyer's location.
If title to merchandise purchases passes to the buyer when the goods are shipped from the selle the terms are?
FOB shipping point
If the title to merchandise purchases passes to the buyer when the goods are delivered to the buyer the terms are?
FOB destination
When goods are shipped FOB destination and the seller pays the transportation charges what journal entry does the buyer make?
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.
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.
What is FOR destination?
No information was found for destination. FOB destination is an acronym for Freight on Board or Free on Board.
If a company uses the periodic inventory system what is the impact on net income of including goods in transit fob shipping point in purchases but not ending inventory?
Understate net income
How do you change the battery in a Ford transit's key fob?
with great difficulty!
