If the Shipping Terms Are FOB Shipping Point and the Freight

question 113

Multiple Choice

If the shipping terms are FOB shipping point and the freight bill is $200, the purchaser, using a periodic inventory system would record payment of the freight with a debit to:

• A)Inventory and credit to Cash for $200.
• B)Freight In and a credit to Cash for $200.
• C)Inventory and credit to Purchases Discounts for $200.
• D)Purchases Discounts and credit to Inventory for $200.

---

Definitions:

Sales Presentation Goal Model

A structured approach to craft sales presentations with clear objectives in mind, such as informing, persuading, or solving a customer's problem.

Competitive Product

A product that competes in the same market as others by offering similar or better features, quality, or price to attract customers.

Suggestive Proposition

A sales technique that involves making recommendations or suggestions to guide potential customers towards making a purchase decision.

Logical Reasoning

The method of employing a logical, orderly sequence of actions relying on solid mathematical methods and provided assertions to reach a determination.