Alpha recorded a credit sale to one of its customers with terms FOB Shipping Point. As of year-end, the merchandise had been shipped but not received by the customer. The merchandise was not counted (included) in Alpha's ending inventory. Alpha uses the periodic inventory system. What effect does this have on assets, liabilities, and net income?

Answer rating: 100% (QA)

Since the terms of the sale were FOB Shipping Point the ownership of the merchandise transferred fro... View the full answer