For example in the previous transaction the terms were FOB Destination. Shipping cost is . Receivables Sales revenue HPP Trade inventory The seller will have additional journal entries to record shipping costs Delivery fee Cash or Debt Buyers may not enter because the terms are FOB destination the seller bears the costs. Also read Accru Interest Definition Formula and Journaling in Accounting What is FOB shipping point With FOB shipping point ownership of the merchandise passes to the buyer when the goods are shipp.
Buyer pays shipping cost
The delivery place can be a post office Cayman Islands WhatsApp Number List pickup or cargo ship. Once the merchandise is shipp the buyer owns it. If the merchandise is damag in transit the loss is the responsibility of the buyer. Journal recording for FOB shipping point costs When the terms of sale indicate FOB shipping point the buyer records the cost as merchandise inventory. Shipping increases the cost of purchasing that inventory. For example in the previous transaction the terms were FOB Shipping Point.
Shipping cost is
The initial transaction for the Philippine Phone Number List purchase is Trade inventory Debt The buyer will have additional journal entries to record shipping costs Trade inventory Cash or debt The seller cannot make an entry because the terms are FOB shipping point the buyer bears the costs. Also read How to Make a Petty Cash Journal and Case Examples General Journal of Trading Companies Sales Tax Accounting Indonesia imposes a sales tax. So trading companies collect sales tax at the time of sale. The tax amount is add to the sale. The tax collect is the responsibility of because the tax will later be deposit and report to the tax authority.