nanette3775 nanette3775

04-03-2020
Business

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Lambert Company, a wholesale merchandiser, would record a sale when the goods leave Lambert's shipping department only if which of the following possible times for transfer of controls is specified in the sales agreement?

A. FOB cash on delivery
B. FOB destination
C. FOB prepaid
D. FOB shipping point

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Cetacea Cetacea

06-03-2020

Answer: D. FOB shipping point

Explanation:

FOB(Free-on-board) shipping point is the agreement term state where buyer and seller note the delivery of goods as the shipments leaves from shipment dock.

According to the question,Lambert shipping should have specific FOB shipping point in contract for knowing clear record of delivery of goods leaving the sellers warehouse.

Other options are incorrect because FOB cash on delivery, FOB prepaid and FOB destination are not the agreement terms to defines about product delivery left from shipment dock.Thus, the correct option is option(D)

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