11) What is the term used to indicate that the seller pays all of the shipping and freight costs?
12) When a company sells goods to customers FOB destination, what account does the company use for the cost of shipment?
13) Under a periodic inventory system, the account used to record transportation charges on incoming merchandise is?
14) On July 1, Cara Corp. buys $2,000 of goods on account from IMNl Inc. The terms of the purchase are 2/10, n/30, FOB shipping point. IMNI Inc. prepaid $80 of shipping costs and charges Cara Corp for these shipping costs. Cara then returns $200 of these goods for credit on July 10. On July 15, Cara makes payment in full for the purchase. What is the amount that Cara paid to IMNI Inc.?
15) Journalize the following transactions using the perpetual inventory method.
Dec. 1Purchased $2,900 worth of merchandise from Wills on terms 2/10 n/30, FOB shipping point.
Dec. 5 Paid for $200 of shipping charges.
Dec. 9 Returned $400 worth of inventory to Wills.
Dec. 10 Paid the invoice from Wills.