8. When making a large purchase, the seller of merchandise agrees to pay the delivery expenses....
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8. When making a large purchase, the seller of merchandise agrees to pay the delivery expenses. Would the transaction be considered FOB destination or FOB shipping? Who has title to the merchandise during shipping? 9. Jake's Diamonds purchases merchandise from a supplier on account. They do not discuss who will pay for shipping, but the supplier states that Jake's Diamonds will hold title during shipping. Is this a FOB destination or FOB shipping transaction? Who pays for the shipping expenses? 10. On July 3, Sally's Station sells merchandise to Bill's Buildings for $13,000 on account. The transaction is subject to a 6.5% sales tax. Prepare the journal entry to show the sale, including sales taxes. Also, prepare the journal entry to record Sally's Station's payment of sales taxes, which totaled $3,250 for the previous month on July 15. 8. When making a large purchase, the seller of merchandise agrees to pay the delivery expenses. Would the transaction be considered FOB destination or FOB shipping? Who has title to the merchandise during shipping? 9. Jake's Diamonds purchases merchandise from a supplier on account. They do not discuss who will pay for shipping, but the supplier states that Jake's Diamonds will hold title during shipping. Is this a FOB destination or FOB shipping transaction? Who pays for the shipping expenses? 10. On July 3, Sally's Station sells merchandise to Bill's Buildings for $13,000 on account. The transaction is subject to a 6.5% sales tax. Prepare the journal entry to show the sale, including sales taxes. Also, prepare the journal entry to record Sally's Station's payment of sales taxes, which totaled $3,250 for the previous month on July 15.
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8 Transaction would be considered as FOB Destination Title to the Merchandise d... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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