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You are a merchandiser who buys inventory from a supplier. The supplier has offered you a choice of shipping terms FOB Destination or a discount
You are a merchandiser who buys inventory from a supplier. The supplier has offered you a choice of shipping terms FOB Destination or a discount for early payment. You have calculated the amount of the discount is equal to the amount of the shipping costs.
Question: Do you choose the FOB Destination shipping terms or the discount for early payment? Why? What are the advantages to the option you've chosen? What are the disadvantages of the other option?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
