Question

Ronald Corporation purchases inventory with terms FOB destination. The shipping costs are $300. The shipping costs are

A- paid by the supplier.
B- Deducted from Ronald's inventory.
C- treated as a selling expense.

Answer 1

Shipping costs in a purchase with terms FOB destination are treated as a selling expense.

Step-by-step explanation:

The shipping costs in a purchase with terms FOB destination are treated as a selling expense. This means that the costs of shipping are incurred by the seller and are included as part of the selling expenses for the buyer.