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4. FOB Shipping

in Chapter 5 (Problem 4 of 6)

Determine the effect on a company’s Assets and Net Income from the following transaction: a company using the perpetual inventory method ships goods costing $5,000 to a customer FOB shipping point. The sale price is $8,000.

Assets Net Income
A Decreased Decreased
B Decreased No effect
C Increased No effect
D Increased Increased
E None of the above
Watch Solution (3:18) Hide Solution Reveal Solution

The Rest Of The Practice Problems

Click Here to View All Chapter 5 Problems at Once View
1 Consignment Inventory Easy
2 FOB Destination Easy
3 Inventory Set Aside Easy
4 FOB Shipping
You are here. 		Moderate
5 FOB Shipping Moderate
6 Inventory Costing Moderate
← Chapter 4

Chapter 5 Videos

1 FOB Shipping? 8:51
2 Specific Identification 2:17
3 Weighted Average 4:21
4 FIFO and LIFO 20:17
Chapter 6 →