Botit, Inc., purchased $10,000 of merchandise that was shipped on December 30, FOB destination. The goods...
Botit, Inc., purchased $10,000 of merchandise that was shipped on December 30, FOB destination. The goods arrived on January 5. Given Botit's yearend is December 31, should Botit include or exclude this purchase from its inventory?
Homework Answers
No
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When inventory is purchased FOB destination, the legal title in goods will transfer to the buyer once they reach his destination. So Botit should not include $10,000 of merchandise on December 31. They should be included only when they reach destination |
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Botit, Inc., purchased $10,000 of merchandise that was
shipped on December 30, FOB destination. The goods...
Botit, Inc., purchased $5,000 of merchandise on account that was shipped on December 29, FOB shipping...
Botit, Inc., purchased $5,000 of merchandise on account that was shipped on December 29, FOB shipping point. The goods arrived on January 3. Should Botit include or exclude this inventory from its balance sheet at its year end, December 31?
Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at year end, December 31.
Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at year end, December 31. 1. $2,000 of merchandise purchased from a supplier, shipped FOB shipping point on December 29, in transit at year-end. 2. $1,000 of merchandise shipped to a customer on December 30, FOB destination. The goods arrived at the customer's location on January 5.
1. At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which...
1. At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which company should include the $12,500 of merchandise in transit as part of its year-end inventory? 2. Parris Company has shipped $20,000 of goods to Harlow Co., and Harlow Co. has arranged to sell the good for Parris. Identify the consignor and the consignee. Whicy company should include any unsold goods as part of its inventory?
On December 23rd, 2019 Nike shipped goods to REI. The invoice was for $125,000 and specified...
On December 23rd, 2019 Nike shipped goods to REI. The invoice was for $125,000 and specified FOB destination. The goods arrived at the REl retail store on January 2nd, 2020. Both Nike and REI have December 31 fiscal year ends. For 2019 Nike would record [Select] in Revenue because under FOB destination Revenue is recognized [Select] On December 23rd, 2019 Nike shipped goods to REI. The invoice was for $125,000 and specified FOB destination. The goods arrived at the REI...
On November 1, 2019, Alpha Omega, Inc. sold merchandise for $10,000,FOB destination, with payment terms, n/30....
On November 1, 2019, Alpha Omega, Inc. sold merchandise for $10,000,FOB destination, with payment terms, n/30. The cost of goods sold was $3,000. On November 3, the customer returns on this sale amounted to$4,000.The company received the balance on November 9, 2019. Calculate the cost of goods sold from these transactions.
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller...
Windsor Company took a physical inventory on December 31 and determined that goods costing $189,800 were...
Windsor Company took a physical inventory on December 31 and
determined that goods costing $189,800 were on hand. Not included
in the physical count were $26,130 of goods purchased from Pelzer
Corporation, f.o.b. shipping point, and $23,420 of goods sold to
Alvarez Company for $30,660, f.o.b. destination. Both the Pelzer
purchase and the Alvarez sale were in transit at year-end. What
amount should Windsor report as its December 31
inventory?
December 31 inventory
$
Exercise 8-2
In your audit of...
Godchaux Inc. took a physical inventory at December 31, 2019 and determined that €395,000 of goods...
Godchaux Inc. took a physical inventory at December 31, 2019 and determined that €395,000 of goods were on hand. In addition, the following items were not included in the physical count: (1) €60,000 of goods purchased were in transit, shipped f.o.b. destination (goods were received by Godchaux three days on January 3, 2020) and (2) the company shipped f.o.b. destination €25,000 worth of inventory on December 29. The goods arrived at the buyer's place of business on January 2, 2020....
When goods are shipped FOB Destination and the seller pays the freight charges, the buyer a....
When goods are shipped FOB Destination and the seller pays the freight charges, the buyer a. adds the freight to the cost of the merchandise b. reimburses the seller c. does not take a discount d. makes no journal entry for the freight
Indicate whether the following merchandise in transit should be included or excluded from the company's inventory at year end, December 31. 1. $2,000 of merchandise purchased from a supplier, shipped FOB shipping point on December 29, in transit at year-end. 2. $1,000 of merchandise shipped to a customer on December 30, FOB destination. The goods arrived at the customer's location on January 5.
On December 23rd, 2019 Nike shipped goods to REI. The invoice was for $125,000 and specified FOB destination. The goods arrived at the REl retail store on January 2nd, 2020. Both Nike and REI have December 31 fiscal year ends. For 2019 Nike would record [Select] in Revenue because under FOB destination Revenue is recognized [Select] On December 23rd, 2019 Nike shipped goods to REI. The invoice was for $125,000 and specified FOB destination. The goods arrived at the REI...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Goods in Transit owned by: Transportation Costs paid by: Insurance during transit paid by: Shipping Point Buyer Buyer Buyer Destination Seller...
(10 points) Merchandise can be shipped FOB (Free on Board) Shipping Point or FOB Destination. If FOB Shipping Point, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller Seller Seller If FOB Destination, Circle the appropriate response: Ownership transfers at: Shipping Point Goods in Transit owned by: Buyer Transportation Costs paid by: Buyer Insurance during transit paid by: Buyer Destination Seller...
Windsor Company took a physical inventory on December 31 and
determined that goods costing $189,800 were on hand. Not included
in the physical count were $26,130 of goods purchased from Pelzer
Corporation, f.o.b. shipping point, and $23,420 of goods sold to
Alvarez Company for $30,660, f.o.b. destination. Both the Pelzer
purchase and the Alvarez sale were in transit at year-end. What
amount should Windsor report as its December 31
inventory?
December 31 inventory
$
Exercise 8-2
In your audit of...
Godchaux Inc. took a physical inventory at December 31, 2019 and determined that €395,000 of goods were on hand. In addition, the following items were not included in the physical count: (1) €60,000 of goods purchased were in transit, shipped f.o.b. destination (goods were received by Godchaux three days on January 3, 2020) and (2) the company shipped f.o.b. destination €25,000 worth of inventory on December 29. The goods arrived at the buyer's place of business on January 2, 2020....
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