Question
Affectionate Company sold merchandise on account for P500,000. The terms are 3/10, n/30. The related freight charge amounted to P10,000. The account was collected within
Affectionate Company sold merchandise on account for P500,000. The terms are 3/10, n/30. The related freight charge amounted to
P10,000. The account was collected within the discount period.
Required:
Prepare journal entries to record the transactions under the following freight terms:
a. FOB destination and freight collect
b. FOB destination and freight prepaid
c. FOB shipping point and freight collect
d. FOB shipping point and freight prepaid
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Survey of Accounting
Authors: Carl S Warren
6th edition
978-113318912, 1133189121, 978-1133189121
