Accounting Principles

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Accounting Principles

Business Finance, Glendale Community College

Accounting Principles

Question Description

1. What components of revenues and expenses are different between merchandising and service companies?

2. Distinguish between FOB shipping point and FOB destination. Identify the freight terms that will result in a debit to Inventory by the buyer and a debit to Freight-Out by the seller.

3. Explain the meaning of the credit terms 2/10, n/30.

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