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Freight Prepaid, FOB Destination: Seller's Books Buyer's Books

Junny sold merchandise worth 1,000,000 to JayB on account with terms of 2/10, n/30. Freight costs amounted to 20,000. The document then provides journal entries for the seller and buyer under different scenarios depending on whether freight was prepaid or collect and the shipping terms were FOB destination or shipping point.

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SUMMER CONSTANTINO
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75 views1 page

Freight Prepaid, FOB Destination: Seller's Books Buyer's Books

Junny sold merchandise worth 1,000,000 to JayB on account with terms of 2/10, n/30. Freight costs amounted to 20,000. The document then provides journal entries for the seller and buyer under different scenarios depending on whether freight was prepaid or collect and the shipping terms were FOB destination or shipping point.

Uploaded by

SUMMER CONSTANTINO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Constantino, Summer N.

BSA-BFA

Junny sold merchandise to JayB, 1,000,000 on account. 2/10, n/30.


Freight amounted to P 20,000.
Record the following under the following scenarios
1.1 sale / Purchase
1.2 Collection/ Payment

Seller's Books Buyer's Books

Freight prepaid, FOB Destination


Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchases 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-01 Freight Out 20,000.00 01-02 Accounts Payable 1,000,000.00


Cash 20,000.00 Purchase Discount 20,000.00
Cash 980,000.00
01-02 Cash 1,000,000.00
Sales Discount 20,000.00
Accounts Receivable 980,000.00

Freight collect, FOB Destination


Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchases 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-01 Accounts Receivable 20,000.00 01-02 Accounts Payable 1,020,000.00


Freight out 20,000.00 Purchase Discount 20,000.00
Cash 1,000,000.00
01-02 Cash 1,020,000.00
Sales Discount 20,000.00
Accounts Receivable 1,000,000.00

Freight prepaid, FOB Shipping point


Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchases 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-01 Accounts Receivable 20,000.00 01-01 Freight In 20,000.00


Cash 20,000.00 Accounts Payable 20,000.00

01-02 Cash 1,020,000.00 01-02 Accounts Payable 1,020,000.00


Sales Discount 20,000.00 Cash 1,000,000.00
Accounts Receivable 1,000,000.00 Purchase Discount 20,000.00

Freight Collect, FOB Shipping point


Date particulars Dr Cr Date particulars Dr Cr
01-01 Accounts Receivable 1,000,000.00 01-01 Purchase 1,000,000.00
Sales 1,000,000.00 Accounts Payable 1,000,000.00

01-02 Cash 980,000.00 01-01 Freight In 20,000.00


Sales Discount 20,000.00 Cash 20,000.00
Accounts Receivable 1,000,000.00
01-02 Accounts Payable 980,000.00
Purchase Discount 20,000.00
Cash 1,000,000.00

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