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Unformatted text preview: Inc., Music World increases (debits) freight-in for $30 and decreases (credits) cash for $30. Freight terms, which indicate whether the purchaser or seller pays the shipping fees, are often specified with the abbreviations FOB shipping point or FOB destination. FOB means free on board . FOB shipping point means the purchaser pays the shipping fees and gains title to the merchandise at the shipping point (the seller's place of business). FOB destination means the seller pays the shipping fees and maintains title until the merchandise reaches its destination (the purchaser's place of business)....
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- Fall '10