Decide whether each situation belongs in our ending inventory. Every miss tells you why.
1.Goods we bought, in transit, shipped FOB shipping point
2.Goods we bought, in transit, shipped FOB destination
3.Goods we sold, in transit, shipped FOB shipping point
4.Goods we sold, in transit, shipped FOB destination
5.Our goods held by another store on consignment
6.Another company's goods we hold on consignment
7.Damaged goods we still own and can sell at a reduced price
Two of the sales fire twice — a price entry and a cost entry — so there are 11 cards.
Aug 3: buys 15 units at $106 on credit.