Below are the merchandising transactions between the seller (Lianjo) and the buyer (Jolian). March Transaction Lianjo...

 

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Below are the merchandising transactions between the seller (Lianjo) and the buyer (Jolian). March Transaction Lianjo sold RM2,000 of merchandise on account, terms FOB destination, 5/10, n/30. The cost of the merchandise was RM1500 and the transportation charges of RM200 was paid as per the term. Lianjo sold RM2,500 of merchandise on account, terms FOB shipping point, 2/10, n30. The cost of the merchandise was RM1600 and the transportation charges of RM250 was paid as per the term. Jolian returned merchandise from the 4 March sale. Lianjo issued a RM300 credit memorandum. The cost of the merchandise retum was RM180. 4. 10 Jolian made a full payment on the 4 March sale. 15 Jolian purchased RM3,000 of merchandise on account FOB shipping point, 2/10, n/EOM. The transportation cost of RM300 was paid by Lianjo. The cost of merchandise was RM1,800. Lianjo received payment from Jolian for 6 March transaction. Jolian purchased RM3,000 of merchandise in cash, FOB shipping point. The transportation cost was RM300 and paid by Jolian. The cost of the merchandise was RM2.000. 17 22 REQUIRED: Prepare journal entries to record the above merchandising transactions for both the seller and the buyer. (a) (30 Marks) (b) Explain the term FOB shipping point and FOB destination. (5 Marks) 6. Below are the merchandising transactions between the seller (Lianjo) and the buyer (Jolian). March Transaction Lianjo sold RM2,000 of merchandise on account, terms FOB destination, 5/10, n/30. The cost of the merchandise was RM1500 and the transportation charges of RM200 was paid as per the term. Lianjo sold RM2,500 of merchandise on account, terms FOB shipping point, 2/10, n30. The cost of the merchandise was RM1600 and the transportation charges of RM250 was paid as per the term. Jolian returned merchandise from the 4 March sale. Lianjo issued a RM300 credit memorandum. The cost of the merchandise retum was RM180. 4. 10 Jolian made a full payment on the 4 March sale. 15 Jolian purchased RM3,000 of merchandise on account FOB shipping point, 2/10, n/EOM. The transportation cost of RM300 was paid by Lianjo. The cost of merchandise was RM1,800. Lianjo received payment from Jolian for 6 March transaction. Jolian purchased RM3,000 of merchandise in cash, FOB shipping point. The transportation cost was RM300 and paid by Jolian. The cost of the merchandise was RM2.000. 17 22 REQUIRED: Prepare journal entries to record the above merchandising transactions for both the seller and the buyer. (a) (30 Marks) (b) Explain the term FOB shipping point and FOB destination. (5 Marks) 6.

Answer rating: 100% (QA)

PART B FOB may be a shipment term wont to indicate whether the vendor ... View the full answer