Asked by Jackie Ramirez on Jun 11, 2024
Verified
If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
A) n/30
B) FOB shipping point
C) FOB destination
D) consigned
FOB Shipping Point
A term used in shipping contracts to indicate that a buyer must pay for the shipping costs and is responsible for the goods once they leave the seller's premises.
FOB Destination
FOB Destination is a shipping term indicating that the seller retains ownership and liability of goods until they are delivered to the buyer's specified location, at which point the buyer assumes responsibility.
Title Passage
The point in time when the ownership (title) of goods passes from seller to buyer as per the terms of the sales contract.
- Understand the reporting and impact of freight terms on accounting entries.
Verified Answer
Learning Objectives
- Understand the reporting and impact of freight terms on accounting entries.
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