Asked by
Aireiona Claiborne
on Nov 12, 2024
Verified
Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOB shipping point.
FOB Shipping Point
A shipping term indicating that the buyer assumes all costs and risks of loss or damage to the goods once they are shipped by the seller.
Ending Inventory
The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus cost of goods sold.
- Establish the assignment of ownership and financial responsibility for transportation charges in terms of FOB shipping point and FOB destination.
Verified Answer
AH
Learning Objectives
- Establish the assignment of ownership and financial responsibility for transportation charges in terms of FOB shipping point and FOB destination.
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