Question

In: Accounting

1) Which of the following accounts usually has a debit balance? a. Freight-In b. Allowance for...

1)

Which of the following accounts usually has a debit balance?

	a.	Freight-In
	b.	Allowance for Doubtful Accounts
	c.	Sales tax Payable
	d.	Purchase Discounts

2)

If the seller is to pay the freight costs of delivering merchandise, the delivery terms are stated as

	a.	FOB destination
	b.	FOB n/30
	c.	FOB seller
	d.	FOB shipping point

3)

Merchandise with an invoice price of $5,000 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?

	a.	$5,096
	b.	$4,900
	c.	$5,200
	d.	$4,704

Expert Solution

Solution:

Answer 1:

The correct Option is (a). Freight-In.

Answer 2:

The correct Option is (a). FOB destination

Answer 3:

The correct Option is (b). $4,900.

!% of $5,000 is $50 x 2

= $100 reserve funds

Dandy goal implies the merchant pays the cargo; goal is the place the adjustment in proprietorship happens. In the event that it has said FOB shipping point and the merchant paid the $200, the $200 would be added to the limited measure of $4,900 for a sum of $5,100.

ekkarill92 answered 2 years ago

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