Suppose Company A places an order with Company B on May 12.On May 14,Company B ships the ordered goods to Company A with terms FOB destination.The goods arrive at Company A on May 17.Company A begins selling the goods to customers on May 19 and pays Company B on May 20.When would Company B record the sale of goods to Company A?

Question

Quizplus · Accepted Answer

Company B would record the sale on May 17, which is the date the goods arrived at Company A's destination. This is because the terms of the sale were FOB destination, meaning that Company B still owns the goods until they reach their destination, which is Company A in this case.

Suppose Company a Places an Order with Company B on May