If Joe's Safety Supply Inc. quotes an FOB destination price to a factory buying five hazardous waste disposal units, it indicates that:
A. Joe's Safety Supply will pay all freight charges.
B. Joe's Safety Supply and the factory will split all shipping charges.
C. the factory will assume complete responsibility for the units once they leave the Joe's Safety Supply loading dock.
D. the factory will pay all freight charges.
E. the factory will pay for any damage caused to the units while shipping.
Answer: A
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Jenning Co adjusts its books each month but closes its books at the end of the year. The trial balance at July 31 before adjustments is as follows: Debit Credit Cash $12,920 Accounts Receivable 9,620 Supplies 1,400 Prepaid Insurance 3,120 Equipment 26,000 Accumulated Depreciation—Equipment $10,400 Unearned Service Revenue 6,500 Capital Stock 7,190 Retained Earnings 23,500 Dividends 1,560
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