When a company repays the seller for shipping costs on an FOB shipping transaction, which of the following is true?
A) A purchase discount can still be taken net of the prepaid shipping charges.
B) A purchase discount can still be taken on the gross amount of the invoice.
C) A purchase discount cannot be taken when shipping charges are prepaid.
D) The shipping costs do not affect the invoice cost.
E) The shipping costs are not added to the cost of the inventory.
Correct Answer:
Verified
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