Identifying Goods in Transit as Inventory or Not On December 31, 2020, Diamond Co. is...
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Identifying Goods in Transit as Inventory or Not On December 31, 2020, Diamond Co. is determining whether goods in-transit should be included or excluded from the physical inventory count. One shipment in- transit to Diamond Co. for $20,000 was shipped f.o.b. destination from a vendor. The goods are expected to arrive on January 2, 2021. One shipment in-transit from Diamond Co. for $8,000 was shipped f.o.b. destination to a customer. The merchandise is expected to arrive on January 3, 2021. What shipment amount(s) (if any) should be included in the physical inventory count on December 31, 2020? Amount to include in inventory balance of Diamond Co. $
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