17. The term used to designate that the buyer of merchandise is responsible for the transportation costs
Question:
17. The term used to designate that the buyer of merchandise is responsible for the transportation costs of shipping the merchandise is
A. E.O.M. shipping point.
C. E.O.M. destination.
B. F.O.B. shipping point.
D. F.O.B. destination.
18. Gross profit on sales minus operating expenses equals
A. net operating income.
C. net sales.
B. cost of goods sold.
D. net operating expenses.
19. The following information about the Wells Company's merchandising accounts is available:
Beginning Inventory . . . . . . . . . . . . $100,000
Ending Inventory. . . . . . . . . . . . . . . 40,000
Purchase Discounts . . . . . . . . . . . . . 4,000
Transportation-in. . . . . . . . . . . . . . . 7,500
Purchases. . . . . . . . . . . . . . . . . . . . 55,000
Cost of Goods Sold . . . . . . . . . . . . . 115,000
The information on Purchase Returns and Allowances has been misplaced, and it's up to you to determine its final balance from the information given above. The amount of Purchase Returns and Allowances must be
A. $3,500.
B. $7,500.
C. $11,000.
D. $15,000.