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Graph the system.
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Accounts Payable
Amounts a company owes to its creditors for goods or services that have been delivered or used but not yet paid for.
FOB Shipping Point
This term represents a shipping agreement where the buyer takes responsibility for the goods once they are shipped, implying ownership transfer at the seller's location.
Freight Costs
Costs a company bears to move merchandise from one location to another.
Purchased Merchandise
Goods acquired by a business for the purpose of reselling them to final consumers.
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