A company sells a product FOB destination. The product is shipped on December 29, 2013 and the customer receives the shipment on January 3, 2014. Which of the following is true?
A) The sale will be recorded when the customer's credit card information is received.
B) The sale will be recorded when the shipment is received by the customer.
C)The sale will be recorded when the shipment is shipped.
D)The sale will be recorded when it is known there will be no returns or allowances.

Question

Quizplus · Accepted Answer

According to the FOB destination terms, the seller is responsible for the product until it reaches the customer's destination. Therefore, the sale will be recorded when the shipment is received by the customer on January 3, 2014.

A Company Sells a Product FOB Destination