The following events apply to Dana's Dance Wholesalers.
1) Sold merchandise to a customer. The goods were shipped FOB destination, $65.
2) Purchased merchandise with freight cost of $125, shipped with the terms FOB shipping point.
3) Sold merchandise to a customer with freight cost of $90, shipped FOB shipping point.
Required:
a) Based on the above events, what is the total amount of freight that will be paid by Dana's Dance Wholesalers?
b) How much of the freight cost will be recorded as an expense when incurred?

Question

Quizplus · Accepted Answer

The Answer of The following events apply to Dana's Dance Wholesalers.
1) Sold merchandise to a customer. The goods were shipped FOB destination, $65.
2) Purchased merchandise with freight cost of $125, shipped with the terms FOB shipping point.
3) Sold merchandise to a customer with freight cost of $90, shipped FOB shipping point.
Required:
a) Based on the above events, what is the total amount of freight that will be paid by Dana's Dance Wholesalers?
b) How much of the freight cost will be recorded as an expense when incurred?

The Following Events Apply to Dana's Dance Wholesalers