At the year-end inventory count,if goods in transit are shipped FOB destination point,they should be included in the inventory count of
A)the seller.
B)the buyer.
C)neither the buyer nor the seller.
D)both the buyer and the seller.

Question

At the year-end inventory count,if goods in transit are shipped FOB destination point,they should be included in the inventory count of
A)the seller.
B)the buyer.
C)neither the buyer nor the seller.
D)​both the buyer and the seller.

Quizplus · Accepted Answer

Goods shipped FOB (Free On Board) destination point are included in the inventory of the seller until they reach the buyer's location, as the seller retains ownership during transit.

At the Year-End Inventory Count,if Goods in Transit Are Shipped