Harris Corp. sold merchandise to Ichay Company on December 28, 2012, with shipping terms of FOB destination. The buyer received the merchandise on January 3, 2013. Which of the following is true?
A) The seller should record the sales revenue on December 28, 2012.
B) The buyer should pay the transportation costs.
C) The buyer should include the merchandise in its inventory at December 31, 2012.
D) The buyer should record a liability for the purchase on January 3, 2013.
Correct Answer:
Verified
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