Solved

Match the Descriptions Below to the Correct Credit or Shipping

Question 163

Matching

Match the descriptions below to the correct credit or shipping terms.Some terms may be used more than once.Others may not be used at all.

Premises:

Responses:

shipping terms that would typically mean that the buyer has to pay the freight charges

FOB shipping point

credit terms that would set May 2 as the latest payment date to take a discount on an April 17 purchase

3/10

credit terms that allow the buyer a maximum of two months to pay the debt

FOB destination

would result in a $200 discount for early payment of a $10,000 purchase

n/30

credit terms that do not allow a discount for early payment

1/15

would result in a $150 discount for early payment of a $5,000 purchase

2/10

Premises:

shipping terms that would typically mean that the buyer has to pay the freight charges

credit terms that would set May 2 as the latest payment date to take a discount on an April 17 purchase

credit terms that allow the buyer a maximum of two months to pay the debt

would result in a $200 discount for early payment of a $10,000 purchase

credit terms that do not allow a discount for early payment

would result in a $150 discount for early payment of a $5,000 purchase

Responses:

FOB shipping point

3/10

FOB destination

n/30

1/15

2/10

Correct Answer:

Premises:

Responses:

shipping terms that would typically mean that the buyer has to pay the freight charges

credit terms that would set May 2 as the latest payment date to take a discount on an April 17 purchase

credit terms that allow the buyer a maximum of two months to pay the debt

would result in a $200 discount for early payment of a $10,000 purchase

credit terms that do not allow a discount for early payment

would result in a $150 discount for early payment of a $5,000 purchase