Carmen Corporation ordered materials from Bizet Manufacturing on November 1,2010,Bizet shipped the materials by barge on November 5 and the barge company notified Carmen on November 22,that the goods had arrived.Carmen picked up the materials on November 23.The terms of the sale are FOB destination.On what date should Carmen consider this a purchase?
A)November 1
B)November 5
C)November 22
D)November 23

Question

Quizplus · Accepted Answer

The terms of the sale are FOB destination, which means that the seller (Bizet Manufacturing) bears the risk of loss or damage to the goods during shipment and is responsible for the costs of transportation until the goods are delivered to the buyer (Carmen Corporation). Therefore, Carmen should consider this a purchase on November 23, the date when they took possession of the goods.

Carmen Corporation Ordered Materials from Bizet Manufacturing on November 1,2010,Bizet