Park, IncPurchased Merchandise from Jay Zee Music Company on June 5

question 1

Multiple Choice

Park, Inc.purchased merchandise from Jay Zee Music Company on June 5, 2016.The goods were shipped the same day.The merchandise's selling price was $15,000.The credit terms were 1/10, n/30.The shipping terms were FOB shipping point.Park received the merchandise on June 10, 2016.Park paid the amount due on June 13, 2016. ​
Who is responsible for payment of the transportation costs on the merchandise sold by Jay Zee Music to Park?

• A) Split equally between the two companies
• B) Jay Zee Music Company
• C) Park, Inc.
• D) Cannot be determined from the information provided

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Definitions:

Financial Statements

Reports that provide detailed information about a company's financial condition in terms of income, expenses, assets, and liabilities.

Useful Life

The estimated period over which an asset is expected to be functional and economically feasible for its intended purpose.

Salvage Value

The projected selling price of an asset when its useful life concludes.

Useful Life

The estimated time period that an asset is expected to be functional and contribute economically to its owner.