The seller bears the transportation cost of merchandise sold if the terms of shipment are

Freight costs incurred by a seller on merchandise sold to customers will cause an increase:Group of answer choicesin the selling expenses of the buyer.in operating expenses for the seller.to the cost of sales of the seller.to a discount received account of the seller.

If the seller is responsible for the shipping costs of merchandise sold, the shipping terms will be specified as:Multiple choice question.FOB factoryFOB startFOB destinationFOB shipping point

Select all that applyThe buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show your understanding of freight terms by selecting all of the correct statements below.Multiple select question.Terms FOB destination means that the seller is responsible for shipping costs.When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.When the shipping costs are the responsibility of the seller, then the Merchandise Inventory account is debited.Terms FOB shipping point means the seller of the goods is responsible for freight charges.

Freight In and Purchases Returns and Allowances are deducted from Purchases to determine the cost of goods sold.

For the current fiscal year, Purchases were $270,000, Purchases Returns and Allowances were $4,200 and Freight In was $21,000. If the beginning merchandise inventory was $170,000 and the ending merchandise inventory was $87,000, the Cost of Goods Sold is: