On November 27,Acme,Inc.ordered merchandise from Zenith Company.Zenith shipped the merchandise to Acme on November 29,FOB destination.The merchandise arrived at Acme's warehouse on December 1.Acme paid for the merchandise on January 2.When should Acme record the purchase?

Question

Quizplus · Accepted Answer

Acme should record the purchase on December 1, the date the merchandise arrived at their warehouse, as that is when the title and risk of loss transferred to Acme. The payment date of January 2 is not relevant for recording the purchase.