If goods shipped FOB destination are in transit at the end of the year,they should be included in the inventory balance of the

Question

Quizplus · Accepted Answer

FOB destination means that the goods are considered delivered (and thus part of the inventory) once they reach the buyer's location. Therefore, if goods are in transit at the end of the year, the risk of loss has not yet passed to the buyer, and the goods should still be included in the seller's inventory.

If Goods Shipped FOB Destination Are in Transit at the End