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    Noah91399's Avatar
    Noah91399 Posts: 4, Reputation: 1
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    #1

    Feb 6, 2007, 08:32 AM
    Homework FOB destintation
    When goods are shipped FOB destination and the seller pays the transportation charges, the buyer

    My answers are

    Journalizes a reduction for the cost of the merchandise
    Journalizes a reimbursement to the seller
    Does not take a discount
    Makes no journal entry for the transportation

    I think the buyer does not take a discount is this correct?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Feb 6, 2007, 09:43 PM
    I would go with “does not take a discount”, or better yet, “makes no journal entry for the transportation”

    If I am the buyer and the seller is shipping it to me for free…

    All I would do is record it at the purchase price I am paying, period. And I would just ignore shipping all together.
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