Goods in transit shipped FOB (free-on-board) destination should _______.
A)remain in the inventory of the buyer and be excluded from the purchaser's inventory and accounts payable until arrival at the purchasing entity's receiving department.
B)remain in the inventory of the seller and be excluded from the purchaser's inventory and accounts payable until arrival at the purchasing entity's receiving department.
C)remain in the inventory of the buyer and be included from the purchaser's inventory and accounts payable until arrival at the purchasing entity's receiving department.
D)remain in the inventory of the seller and be included from the purchaser's inventory and accounts payable until arrival at the purchasing entity's receiving department.

Question

Quizplus · Accepted Answer

Goods shipped FOB destination remain in the inventory of the seller until they arrive at the buyer's location. This means the goods are not included in the purchaser's inventory or accounts payable until they are received.

Goods in Transit Shipped FOB (Free-On-Board) Destination Should _______