Merchandise with an invoice price of $16,100 is sold subject to terms of 2/10, n/30, FOB...

Merchandise with an invoice price of $16,100 is sold subject to terms of 2/10, n/30, FOB shipping. The seller prepaid $151 for the cost of transportation. How much does the seller record in the Sales account at the time of the sale?

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Expert Solution

The Journal Entry at the time of sale in Sellers Books :

Accounts Receivable	16251
Sales		16100
Cash		151
(To record sales made on account and freight incurred on sales)

In FOB Shipping Point, Freight should be paid by the buyer of goods and in this case, Since the seller has already prepaid the freight, it will be reimbursed by the buyer at the time of making payment.

ekkarill92 answered 1 year ago

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