If the terms are FOB Shipping Point, the seller pays the freight costs and charges them to the Inventory account if a perpetual inventory system is used.
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Q5: Under a perpetual inventory system the cost
Q18: A physical count of inventory is only
Q19: Sales revenue minus cost of goods sold
Q21: When goods are shipped FOB Destination, the
Q22: FOB Shipping Point means the buyer pays
Q25: The words "on account" or the presence
Q26: In a cash purchase of inventory, the
Q27: When goods are shipped FOB Shipping Point,
Q28: The seller's entry for a purchase return
Q29: The terms 2/10 n/30 state that a
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