Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.

Name: Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

Goods shipped FOB destination means that ownership of the goods transfers from the seller to the buyer once they reach the buyer's destination. Therefore, goods in transit should not be included in the buyer's ending inventory as they do not yet own them.

Purchased Goods in Transit, Shipped FOB Destination, Should Be Excluded