What happens when merchandise is delivered FOB shipping point? The buyer pays the freight cost. The...

What happens when merchandise is delivered FOB shipping point?

The buyer pays the freight cost.
The buyer records transportation cost as an expense.
The seller records transportation-out expense.
The seller pays the freight cost.

Expert Solution

Correct option is: The buyer pays the freight cost

FOB shipping point means Freight cost is paid by the buyer at the time of delivery and seller need not to pay any transportation cost

ekkarill92 answered 2 years ago

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