For each of the following transactions, indicate which company should include the inventory on its December 31,
Question:
1. Michelson Supplies Inc. shipped merchandise to PJ Sales on December 28, 2010, terms FOB destination. The merchandise arrives at PJ’s on January 4, 2011.
2. Quarton Inc. shipped merchandise to Filbrandt on December 25, 2010, FOB destination. Filbrandt received the merchandise on December 31, 2010.
3. James Bros. Inc. shipped merchandise to Randall Company on December 27, 2010, FOB shipping point. Randall Company received the merchandise on January 3, 2011.
4. Hinz Company shipped merchandise to Barner Inc. on December 24, 2010, FOB shipping point. The merchandise arrived at Barner’s on December 29, 2010.
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1 Michelson should include the costs in its inventory since ...View the full answer
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Related Book For 
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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