WebJul 26, 2024 · FOB freight prepaid and added specifies that the seller is obligated to pay the freight transportation charges. However, the seller bills the cost of transportation to … WebFeb 19, 2024 · 21 After negotiations, received from Frost a $500 allowance toward the $8,500 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 …
Prepare journal entries to record the following merchandising
WebJun 29, 2024 · Aug. 19 Accounts Receivable (Tux Co.) $4,800 Sales Revenue $4,800 credit terms of n/10, FOB shipping point, invoice dated August 19. Cost of goods sold $2,400 Inventory $2,400 Aug. 22 Sales Allowances $500 Accounts Receivable (Tux Co.) $500 Aug. 29 Cash $4,257 Cash Discounts $43 Accounts Receivable $4,300 WebFOB destination means the seller should continue to carry the merchandise in inventory until it reaches the buyer’s location. This becomes really important at year-end when each party is trying to determine their actual balance sheet inventory accounts. ipad repairs torquay
What Is FOB Shipping Point? Definition and Guide (2024)
WebAn allowance for the return of merchandise granted by the creditor is 2,000. The calculation is as follows: Invoice amount = Amount returned/ (1-Discount) = 1,980/ (1-.01) = 2,000 - Note: It is assumed that the discount received is 1%, on the basis of credit terms. WebAug 18, 2024 · Step-by-Step SolutionStep 1: Definition of Sales Return and Allowance The sales return and allowance account reports the value of the goods that the customer returns due to a defect or any other valid reason. Step 2: Journal Entries Most popular questions for Business-studies Textbooks WebThe FOB term is used with an identified physical location to determine 1) the responsibility and basis for payment of freight charges, and 2) the point at which title for the shipment … ipad repair tyler tx