1. At year-end, Jolie Co. had shipped $850 of merchandise FOB destination to China Co. Which company should include the $850 of merchandise in transit as part of its year-end inventory?

2. Jolie Company has shipped $500 of goods to China Co., and China Co. has arranged to sell the goods for Jolie. Identify the consignor and the consignee. Which company should include any un¬

sold goods as part of its inventory? l02