Explain about delivery expense, Accounting Basics

Assignment Help:

Q. Explain about delivery expense?

When shipping goods FOB destination freight prepaid the seller is accountable for and pays the freight bill. For the reason that the seller cannot bill a separate freight cost to the buyer the buyer shows no entry for freight on its books. The seller though has undoubtedly considered the freight cost in setting selling prices. The following entry is necessary on the seller's books

845_Explain about delivery expense.png

While the terms are FOB destination the seller records the freight costs as delivery expense this selling expense appears on the income statement with other selling expenses.


Related Discussions:- Explain about delivery expense

Montana company produces basketballs., Montana Company produces basketballs...

Montana Company produces basketballs. It incurred the following costs during the year. Direct materials: $14,032 Direct Labor: $25,706 Fixed manufacturing overhead: $9,698

Difference among financial and taxable income , The following difference am...

The following difference among financial and taxable income were reported by Dider Corporation for the current year (a)    Excess of tax depreciation over book depreciation-------

Explain the pretax impact of the changes , Beth Clark is an Accounting Mana...

Beth Clark is an Accounting Manager at Specialty Products Corp.  One afternoon in early January 2012, her boss, Controller Dan Greene, met with her and stated the following, "Beth,

A wholesaler lists a refrigerator model at a price of $850, A wholesaler li...

A wholesaler lists a refrigerator model at a price of $850 and offers a chain discount of 20% and 10%. What is the net price? A. $476 B. $595 C. $612 D. $644

What do you mean by work sheet, Q. What do you mean by work sheet? The ...

Q. What do you mean by work sheet? The work sheet is a columnar sheet of a computer spreadsheet or a paper on which accountants summarize information needed to make the adjusti

What does the 2011, At December 31, 2011 and 2010, Miley Corp. had 180,000 ...

At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were decl

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd