Chandler Company Bought Goods from Lisel Company, with Shipping Terms

question 7

Multiple Choice

Chandler Company bought goods from Lisel Company, with shipping terms FOB destination. Which of the following statements correctly identifies who is to pay the freight bill when the title is transferred?

• A) Lisel pays transportation, and title is exchanged when goods are unloaded at Chandler Company.
• B) Chandler pays transportation, and title is exchanged when goods are loaded at Lisel Company.
• C) Lisel pays transportation, and title is exchanged when goods are unloaded at Lisel Company.
• D) The buyer pays the freight, thus the term FOB (free on board).
• E) Chandler pays transportation, and title is exchanged when goods are unloaded at Chandler Company.