Question

Inventory purchased from a supplier should be accounted for as inventory by the purchaser prior to...

Inventory purchased from a supplier should be accounted for as inventory by the purchaser prior to receipt whenever the goods are shipped

Group of answer choices

By common carrier

FOB destination

FOB shipping point

On consignment

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Answer #2

OPTION - FOB SHIPPING POINT.

In FOB Shipping point the buyer/Purchaser prior to receipt pays or records the inventory whenever the goods are shipped.

In FOB Destination the seller records and pays for the inventory whenever the goods are shipped.

By common carrier the inventory is recorded as per the terms of the agreement.

On Consignment the inventory are recorded by the consignor and later are recorded by the consignee.

If you have any doubts please comment on the answer..

answered by: anonymous
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