Glenrosa Company bought inventory from Monterosa Company,FOB destination.On December 31,the last day of the accounting year,the goods were on a truck owned by Common Carrier,Inc. ,and not expected to arrive until January 2.Which company should include these goods in its December 31 inventory?

Question

Quizplus · Accepted Answer

Since the goods were in transit,title has not passed to Glenrosa and thus they are Monterosa's inventory on its balance sheet.

Glenrosa Company Bought Inventory from Monterosa Company,FOB Destination