16 Jan I need help on the freight charges of each transac
I need help on the freight charges of each transaction, I always get confused when I see the FOB’s. Presented here are selected transactions for Norlan Inc during September of the current year. Norlan uses a perpetual inventory system. Sold merchandise costing $15,000 to Fischer limited on account for $20,000, terms 2/10, n/30, FOB shipping point. 1. Freight charges of $1000 were paid by the appropriate party on the above transaction. Purchased delivery equipment on account for $28,000, terms n/30, FOB destination. 2. Freight charges of $500 were paid by the appropriate party on the above transaction. When I look up the definition for the FOB’s, I come to the conclusion that there are no entries for each of the transactions. So am I right?
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