Beyer Company bought inventory from Sellar 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

Under FOB destination terms, the seller (Sellar Company) retains ownership of the goods until they reach the buyer's location. Therefore, Sellar should include the goods in its December 31 inventory.

Beyer Company Bought Inventory from Sellar Company,FOB Destination