Sales on FOB destination basis means the goods remain the property of the seller till the time it reaches the destination of the buyer. All the risk and rewards related to transit is borne by the seller. However, Sales on the FIB shipping point means the property in goods are transferred to the buyer as soon as the goods are dispatched to the buyer. : The corporation having the goods in transit in its inventory.

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Chapter 5, Problem 1E

1.

To determine

Introduction: Sales on FOB destination basis means the goods remain the property of the seller till the time it reaches the destination of the buyer. All the risk and rewards related to transit is borne by the seller. However, Sales on the FIB shipping point means the property in goods are transferred to the buyer as soon as the goods are dispatched to the buyer.

: The corporation having the goods in transit in its inventory.

2.

To determine

Introduction: Consignment sales refer to the transfer of goods by the person (consignor) to another person (consignee) with the objective of selling the same on behalf of the consignor and the goods will remain the property of consignor till it is finally sold.

Name of consignor and consignee and the party in whose books inventory shall be included.

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