Question
Cheap Buyers Inc. sells its products to its customers using the shipping terms, Free On Board (FOB) Shipping Point. On December 31, 2020, it ships
Cheap Buyers Inc. sells its products to its customers using the shipping terms, Free On Board (FOB) Shipping Point. On December 31, 2020, it ships $14,000 for its products to Expensive Buyer. The products arrive at Expensive Buyer on January 3, 2021.
Required:
- When can Cheap Buyers record the $14,000 as revenue?
- When can Expensive Buyer record the $14,000 as Inventory?
- Which Company must pay the $600 to the trucking company?
- Which Company should pay for the insurance while it is in the truck?
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2 Principles Of Financial And Managerial Accounting
Authors: Pollard, Sherry T. Mills, Walter T. Harrison Jr.
0136009891, 978-0136009894
