Jake’s Sporting Goods sells sporting goods and apparel in Omaha, NE. On October 17, Jake’s purchased $50,000 of sporting goods from Cincinnati Wholesale Distributors with terms FOB shipping point and 1/10, n/EOM. On October 18, Jake’s purchased $45,000 of sporting goods from the Chicago Sports Wholesalers with terms FOB destination and 3/15, n/30. Both suppliers hired KC Trucking Company to deliver the goods.
The trucks carrying these goods collided on the bridge over the Missouri River between Omaha and Council Bluffs. Both drivers were “fished” out of the river and were not hurt. However, all of the merchandise was destroyed.
Both suppliers have sent Jake’s Sporting Goods invoices and are expecting payment. The date is October 25.
You are Jake’s accountant, and he reaches out to you to ask what he should do and how much he should pay.
Requirement: Write a professional email advising Jake on the situation. Show your calculations and include a description of the advantages of using various shipping terms.
Professional email resource: The following article presents proper email format, steps to follow, and examples of professional emails.
How To Write a Professional Email Links to an external site.by Indeed Editorial Team.
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