1) A Detroit based company ships a $100,000 car on September 30 to a customer in Honolulu, Hawaii. There is a hurricane on October 5th and the car washes overboard. If the shipping terms were F.O.B destination who has lost a car? Explain WHY? (1 paragraph response)

2) Companies generally record Purchase Discounts directly to the inventory account as a reduction of inventory cost when they are the buyer but when they are the seller they generally create a contra revenue account to Sales to track the amount of Sales Discounts. Do you see any reason a company wants to track the Sales Discounts? (1 paragraph response)