Michael Company shipped merchandise to PJ Sales on December 31, Year 1, terms FOB destination. The merchandise arrives at PJ’s on January 4, Year 2. Which company should include the inventory on its December 31, Year 1 balance sheet?
| Click Here to View All Chapter 5 Problems at Once | View | ||
| 1 | Consignment Inventory | Easy | |
| 2 |
FOB Destination
You are here. |
Easy | |
| 3 | Inventory Set Aside | Easy | |
| 4 | Loss On Inventory | Easy | |
| 5 | FOB Shipping | Moderate | |
| 6 | FOB Shipping | Moderate | |
| 7 | Calculating Operating Income | Hard | |
| 8 | The Effect of Inventory Errors | Hard |
| 1 | COGS and Inventory | 2:57 | |
| 2 | Net Sales | 10:03 | |
| 3 | Perpetual vs Periodic | 7:10 | |
| 4 | FOB Shipping? | 8:51 | |
| 5 | Transportation In | 8:41 | |
| 6 | COGS | 6:18 | |
| 7 | Drawbacks to Periodic | 6:07 | |
| 8 | Estimating with Gross Profit | 7:23 | |
| 9 | The Multistep Income Statement | 12:44 |