WebNov 30, 2024 · In FOB shipping point agreements, the seller pays all transportation costs and fees to get the goods to the port of origin. Once … WebDec 23, 2010 · FOB points don't count in determining the state that has jurisdiction. What matters is where the goods are physically delivered. Well, that's except for two states: Tennessee and New Mexico. In those two …
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WebA sale of $750 on account subject to a sales tax of 6% would be recorded as an account receivable of $750. a. True b. False b. False Merchandise is sold for $3,600, terms FOB destination, 2/10, n/30, with prepaid freight costs of $150. The amount of the sales recorded is $3,528. a. True b. False a. True WebWhen the seller advances the transportation costs and the terms of sale are FOB shipping point, the seller records the payment of the transportation costs by debiting a. Accounts receivable b. Transportation in c. Accounts payable d. Sales 12. Under the perpetual inventory system, in addition to making the entry to record a sales return, a ...
WebFeb 4, 2016 · FOB shipping point is the same as FOB origin: the buyer is responsible for shipping costs and is responsible for the goods as soon as the goods leave the … WebJuly 1. Sold merchandise on account to Landscapes Co., $15,500, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,300. 2. Sold merchandise for $19,700 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $12,800. 5. Sold merchandise on account to Peacock Company, $32,600, terms FOB destination, …
WebYear 1 Jan. 1 Paid $310,000 cash plus $12,400 in sales tax and $1,700 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year lite and a $31,000 salvage value. Loader costs are recorded in the Equipment account. WebWhen a sale is made, accountants must record revenue for the merchandiser and manufacturer. The term, FOB Shipping Point, indicates that the sale occurred at the …
WebJan. 1 Paid $287,600 cash plus $11,500 in sales tax and $1,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $20,600 salvage value. Loader costs are recorded in the equipment account.
blackfoot museumWebSold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300. 3. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000. 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. blackfoot music youtubeWebOne of the key areas to know when it comes to sales tax is “sourcing,” which means the location where a sale is taxed. Origin-sourced sales are taxed where the seller is located, while destination-sourced sales are taxed at the location where the buyer takes possession of the item sold. blackfoot movie mill ticket pricesWebJan 26, 2024 · Transfer of sale. Another important difference between FOB shipping point and FOB destination is that of the party responsible for the shipping costs of the … game of thrones emmyWebJun 23, 2024 · U.S exporters, for example, may be subject to value-added tax (VAT) at a rate of up to 20%. 5 Moreover, the buyer is eligible to receive a VAT refund. Exporters are also subject to unexpected... game of thrones elenco starksWebIn accounting, the term “FOB shipping point” means the point of transfer of goods is when the goods leave the seller’s location. In order words, the buyer will bear all the risks and cost of transportation of goods. Likewise, the transportation cost will include in the journal entry for FOB shipping point on the buyer’s side. blackfoot museum browning montanaWebDec 8, 2024 · Pennsylvania Tennessee Texas Utah Virginia In these origin-based states, if the location of the company selling the product has, say, a 6.5% tax rate, then all … game of thrones emblem