Where should goods in transit that were recently purchased F.o.b. destination be included on the balance sheet?
A) Accounts payable.
B) Inventory.
C) Equipment.
D) Not on the balance sheet.

Question

Quizplus · Accepted Answer

Goods purchased F.o.b. destination are not included in the buyer's inventory until they reach the buyer's location, so they should not be on the balance sheet while still in transit.

Where Should Goods in Transit That Were Recently Purchased F