Multiple Choice: 2 points each 2.When a company ships product to a customer with the terms f.o.b. (free on board) destination, which of the following is true? A) The seller will pay the shipping charges and title will not be exchanged until goods are received by the customer B) The buyer will pay the shipping charges and title is exchanged at point of shipment. C) The seller will pay the shipping and title is exchanged at point of shipment. D) The buyer will pay the shipping and title is exchanged when the goods are received by the customer. 1. Merchandise is ordered on November 10; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on November 13; the merchandise is received by the buyer on November 18; the entry is made in the buyer's accounts on November 20. The credit period begins with what date? a. November 10 b. November 13 c. November 18 d. November 20 3. Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. What is the amount of the sales discount allowable? a. $260 b. $500 c. $460 d. $150