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A retailer uses a perpetual inventory system. The retailer sells inventory to a customer on terms of FOB destination 1/10 30 net 30. One of
A retailer uses a perpetual inventory system. The retailer sells inventory to a customer on terms of FOB destination 1/10 30 net 30. One of the two parties pay for shipping costs. Which one of the following statements concerning the shipment costs is correct?
a.
The customer records the cost as freight out
b.
The retailer records the cost as freight out
c.
The retailer records the cost as part of inventory
d.
The customer records the cost as part of inventory
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