Rigby Company purchased merchandise from a supplier in Hong Kong with an invoice cost of $10,000 and shipping terms of FOB destination.The freight costs amount to $1,000.Rigby should record inventory at a cost of ________.

Question

Quizplus · Accepted Answer

Under FOB destination terms, the seller is responsible for the freight costs, and the buyer records the inventory at the invoice cost only, which is $10,000.

Rigby Company Purchased Merchandise from a Supplier in Hong Kong