Paden Company purchased merchandise from Emmett Company with freight terms of FOB shipping point. The freight costs will be paid by the

A) seller.
B) buyer.
C) transportation company.
D) buyer and the seller.

FOB Shipping Point

This term represents a shipping agreement where the buyer takes responsibility for the goods once they are shipped, implying ownership transfer at the seller's location.

Freight Costs

Costs a company bears to move merchandise from one location to another.

Purchased Merchandise

Goods acquired by a business for the purpose of reselling them to final consumers.