IU. If the freight terms are FOB destination, the seller would record an expense. II. If the freight terms are FOB shipping point, the buyer would assume ownership when the merchandise is loaded on the carrier. 12. In credit terms 1/20, net 90 the discount period is 20 days. 13. It is possible for a company to show a Gross Profit from sales on the Multi-Step Income Statement, yet report a Net Loss for the accounting period, The write-off of a $10,000 account using the Allowance Method would have no effect on the corporation's Income Statement. 15. Investments in the Common Stock of another corporation would be considered a cash equivalent