Question
Question #15 Free on Board (6 points) Cheap Buyers Inc. sells its products to its customers using the shipping terms, Free On Board (FOB) Shipping
Question #15 Free on Board (6 points)
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?
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Which Company should pay for the insurance while it is in the truck?
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International Financial Reporting Standards A Practical Guide
Authors: Hennie Van Greuning, Darrel Scott, Simonet Terblanche
6th Edition
0821384287, 978-0821384282
