Problem #2 Effect of Freight Terms to Inventory Transactions: 1. Jesus Armenta Supplies shipped merchandise to Lily Custodio Sales on Dec. 28, 2009, terms FOB destination. The merchandise arrives at Lily Custodio's on Jan. 4, 2010. 2. Divina Quezada shipped merchandise to Nancy Mulles on Dec. 25, 2009, FOB destination. Nancy Mulles received the merchandise on Dec. 31, 2009. 3. Lamberto Reyes Bros. shipped merchandise to Liwayway Ables Company on Dec. 27, 2009, FOB shipping point. Liwayway Ables Company received the merchandise on Jan. 3, 2010. 4. Felinita Barroga Company shipped merchandise to Nanette Virtudazo on Dec. 24, 2009, FOB shipping point. The merchandise arrived at Nanette Virtudazo's on Dec. 29, 2009. Required: For each of the above transactions, indicate which company should include the inventory on its Dec. 31, 2009 balance sheet:
Problem #2 Effect of Freight Terms to Inventory Transactions: 1. Jesus Armenta Supplies shipped merchandise to Lily Custodio Sales on Dec. 28, 2009, terms FOB destination. The merchandise arrives at Lily Custodio's on Jan. 4, 2010. 2. Divina Quezada shipped merchandise to Nancy Mulles on Dec. 25, 2009, FOB destination. Nancy Mulles received the merchandise on Dec. 31, 2009. 3. Lamberto Reyes Bros. shipped merchandise to Liwayway Ables Company on Dec. 27, 2009, FOB shipping point. Liwayway Ables Company received the merchandise on Jan. 3, 2010. 4. Felinita Barroga Company shipped merchandise to Nanette Virtudazo on Dec. 24, 2009, FOB shipping point. The merchandise arrived at Nanette Virtudazo's on Dec. 29, 2009. Required: For each of the above transactions, indicate which company should include the inventory on its Dec. 31, 2009 balance sheet:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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