1. At year-end Carefree Company has shipped, FOB destination, $500 of merchandise that is still in transit to Stark Company. Which company should include the $500 as part of inventory at year-end?
2. Carefree Company has shipped goods to Stark and has an arrangement that Stark will sell the goods for Carefree. Identify the consignor and the consignee. Which company should include any unsold goods as part of inventory?