Question
Short Answer/Problem #10 Free On Board (5 points) South Bay Boating Company (South) sells to its customers under the terms Free On Board (FOB) Destination.
Short Answer/Problem #10 Free On Board (5 points)
South Bay Boating Company (South) sells to its customers under the terms Free On Board (FOB) Destination. One of its customers is West Shore Marine (West). On December 28, 2019 South sells to West a 25-foot pontoon boat for $29,750. The 25-foot pontoon boat arrives at West on January 4, 2020. The transportation and insurance costs total $3,124.
Requirements:
- On what date can South record the sale as income?
- Which company has to pay the transportation and insurance costs?
- On what date can West record the boat in their inventory?
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Essentials Of Managerial Accounting
Authors: Kurt Heisinger
1st Edition
0618436693, 978-0618436699
