Question

References Mlgseview Virw Hep P Tet me shot you wast to de 1. Whem the trrms of sale ave FOB destinstion, who ahould ulties a Supplier i atcly pay the scamsportation charges? Selle e. Shipping company d Buyer 2. Which of the following methods uses the latest price of inventory first when assigning a vallae to our itmentory b LIFO FIFO c Average cou 3. Merchandise invenory is classified on the balance sheet as a b rent liability c 's not on the balance sheet d. long-term liability 4. A new account on he muls-smep income statemene for a merchandiser wes which of the following as an expetse when seling inventory? b merchandise invennoey t cost of goods sold 5. Tekng adraatage ofa210,บ30 puntaan dise uts equal to, yearly situs tale of approximately fassume 360 days a yeat) 24% to search

when the terms for sale are FOB destination, who should ultimately pay the transportation charges

Answer 1

FOB means free on board. The term FOB destination means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyer's receiving dock.Thus, the concept of FOB destination means the seller ships the goods to their destination without charge to the buyer. The seller is responsible for ultimately paying the Transportation charges.