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Instructions for Each Scenario Determine Who Is Responsible for Paying and and Recording

Question 172

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Instructions
For each scenario determine who is responsible for paying and recording the freight charges: Buyer or Seller.

Premises:
Dureck purchases various products, FOB shipping point.
Zeus Company advises all customers that they only ensure products meet the specified shipping point.
Balli Company orders 500 yoga mats. Balli has recorded the freight charges of $200 to inventory.
Organic Company sells products with a promise that they will ensure all products reach their destination free of charge to the customer.
Purec Company purchases 700 chairs, FOB shipping point.
Malcone company sells DVD's to Kirkland industries, FOB destination.
Responses:
Buyer
Seller

Correct Answer:

Dureck purchases various products, FOB shipping point.
Zeus Company advises all customers that they only ensure products meet the specified shipping point.
Balli Company orders 500 yoga mats. Balli has recorded the freight charges of $200 to inventory.
Organic Company sells products with a promise that they will ensure all products reach their destination free of charge to the customer.
Purec Company purchases 700 chairs, FOB shipping point.
Malcone company sells DVD's to Kirkland industries, FOB destination.
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