ACE, Incorporated, is a direct marketer of computer hardware, software, peripherals, and electronics. In its $2018$ annual report, the company reported, $"$we changed the terms of sale in the fourth quarter of $2017$ such that all of our businesses have terms where title and risk of loss transfer upon delivery to the customer."

Required:

Indicate whether ACE's sales terms are FOB shipping point or FOB destination.

$2$a$.$ Assume ACE sold inventory on account to

eCOST.com on December $28$ that was to be delivered January $3.$ The inventory cost ACE $$32,000$ and the selling price was $$44,000.$ What amounts, if any, related to this transaction would be reported on ACE's balance sheet and income statement in December?

$2$b$.$ Assuming the same information from requirement $2$a$,$ what amounts, if any, related to this transaction would be reported on ACE's balance sheet and income statement in January?

Assume Ace purchased electronics on December $29$ that were shipped that day and received on January $2.$ For these goods to be included in ACE's inventory on December $31,$ would the terms have been under FOB destination or FOB shipping point?