At the year end inventory count, if goods in transit are shipped FOB destination, they should be included in the inventory count of
A) The seller
B) The buyer
C) Neither the buyer nor the seller

Question

Quizplus · Accepted Answer

Goods in transit shipped FOB (Free On Board) destination are included in the inventory count of the seller because ownership transfers to the buyer only when the goods reach the buyer's location.

At the Year End Inventory Count, If Goods in Transit