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On December 29,Perch X,Inc

Question 54

Multiple Choice

On December 29,Perch X,Inc.purchased $2,000 of merchandise from a supplier.The shipping terms were FOB shipping point.The merchandise did not arrive until after yearend.Perch X should ______.


A) exclude the merchandise from its inventory but should record the related accounts payable as of yearend.
B) include the merchandise in its inventory and record the related accounts payable.
C) exclude the merchandise from its inventory and the related accounts payable as of yearend.
D) expense the merchandise as cost of goods sold at yearend.

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