Question
129. If the buyer is to pay the freight costs of delivering
merchandise, delivery terms are stated as
A.FOB shipping point
B. FOB destination
C. FOB n/30
D. FOB buyer
130. If the seller is to pay the freight costs of delivering
merchandise, the delivery terms are stated as 131. If title to
merchandise purchases passes to the buyer when the goods are
shipped from the seller, the terms are
132. Merchandise with an invoice price of $3,000 is purchased
on September 2 subject to terms of 2/10, n/30, FOB destination.
Freight costs paid by the seller totaled $200. What is the cost of
the merchandise if paid on September 12, assuming the discount is
taken?
133. When goods are shipped FOB destination and the seller
pays the freight charges, the buyer
A. journalizes a reduction for the cost of the merchandise.
B. journalizes a reimbursement to the seller.
C. does not take a discount.
D.makes no journal entry for the freight.
134. Anthony Company sold Madison Company merchandise on
account FOB shipping point, 2/10, net 30, for $10,000. Anthony
prepaid the $300 shipping charge. Which of the following entries
does Anthony make to record this sale?
135. Emma Co. sold Isabella Co. merchandise on account FOB
shipping point,, 2/10, net 30, for $15,000. Emma Co. prepaid the
$750 shipping charge. Using the perpetual inventory method, which
of the following entries will Isabella Co. make to record payment
of the merchandise if Isabella Co. pays within the discount period?
136. A chart of accounts for a merchandising
business
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