Shipping terms of FOB destination mean that the:
A) purchaser is responsible for the shipping charges.
B) shipping charges are debited to Freight-Out.
C) items should be in the purchaser's inventory account at year-end if the items are in transit.
D) Both (a) and (c) above.

Question

Quizplus · Accepted Answer

FOB destination means the seller is responsible for shipping charges until the goods reach the buyer's location, so the shipping charges are recorded as Freight-Out by the seller.

Shipping Terms of FOB Destination Mean That The