Jones Co. sells merchandise to J. Smith on account. As the seller Jones Co. pays the cost of transportation to delivery the goods and will not be reimbursed from J. Smith. This is an example of:

Question

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FOB Destination means that the seller (Jones Co.) is responsible for the cost of transportation until the goods are delivered to J. Smith, who is the buyer on account. Therefore, the seller pays the cost of transportation and will not be reimbursed from J. Smith.

Jones Co Sells Merchandise to J