E Company accepts goods on consignment from R Company and also purchases goods from S Company during the current month. E Company plans to sell the merchandise to customers during the following month. In each of these independent situations, who owns the merchandise at the end of the current month and should therefore include it in their company’s ending inventory? Choose E, R, or S.
A. Goods ordered from R, delivered and displayed on E’s showroom floor at the end of the current month.
B. Goods ordered from S, in transit, with shipping terms FOB destination.
C. Goods ordered from R, in transit, with no stated shipping terms.
D. Goods ordered from S, delivered and displayed on E’s showroom floor at the end of the current month, with shipping terms FOB destination.
E. Goods ordered from S, in transit, with shipping terms FOB shipping point.