Texas Inc. sold merchandise to Fagin Corp. on December 28, 2014, with shipping terms of...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Texas Inc. sold merchandise to Fagin Corp. on December 28, 2014, with shipping terms of FOB destination. Fagin Corp. received the merchandise on January 3, 2015. Which one of the following statements is true?
a. Fagin Corp. should pay the transportation costs.
b. Texas should record sales revenue on December 28, 2014
c. Fagin Corp. should record a liability for the purchase on January 3, 2015.
d. Fagin Corp. should include the merchandise in its inventory at December 31, 2014.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
