Giant-Mart purchased a large shipment of shoes from Right Balance,Inc.on credit near the end of its accounting period.Right Balance shipped the shoes in January,and Giant-Mart received the shoes in February.Assume that Giant-Mart's accounting period ends on January 31,while Right Balance's accounting period ends on May 31.

Required
If the shoes are shipped FOB destination point,who will pay the freight costs? If the shoes are shipped FOB shipping point,who will pay the freight costs?

Question

Giant-Mart purchased a large shipment of shoes from Right Balance,Inc.on credit near the end of its accounting period.Right Balance shipped the shoes in January,and Giant-Mart received the shoes in February.Assume that Giant-Mart's accounting period ends on January 31,while Right Balance's accounting period ends on May 31.
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Required
If the shoes are shipped FOB destination point,who will pay the freight costs? If the shoes are shipped FOB shipping point,who will pay the freight costs?

Quizplus · Accepted Answer

The Answer of Giant-Mart purchased a large shipment of shoes from Right Balance,Inc.on credit near the end of its accounting period.Right Balance shipped the shoes in January,and Giant-Mart received the shoes in February.Assume that Giant-Mart's accounting period ends on January 31,while Right Balance's accounting period ends on May 31.
​
Required
If the shoes are shipped FOB destination point,who will pay the freight costs? If the shoes are shipped FOB shipping point,who will pay the freight costs?

Giant-Mart Purchased a Large Shipment of Shoes from Right Balance,Inc