Response to the following questions:
1. What is the nature of
(a) a credit memorandum issued by the seller of merchandise,
(b) a debit memorandum issued by the buyer of merchandise?
2. Who bears the transportation costs when the terms of sale are (a) FOB shipping point, (b) FOB destination?
3. When you purchase a new car, the "sticker price" includes a "destination" charge. Are you purchasing the car FOB shipping point or FOB destination? Explain.
5. What distinguishes a merchandising business from a service business?