Cheap Buyers Inc. sells its products to its customers using the shipping terms, Free On Board

(FOB) Destination. On December 31, 2020, it ships $14,000 for its products to Expensive Buyer.

The products arrive at Expensive Buyer on January 3, 2021.

Required:

(a) When can Cheap Buyers record the $14,000 as revenue?

(b) When can Expensive Buyer record the $14,000 as Inventory?

(c) Which Company must pay the $600 to the trucking company?

(d) Which Company should pay for the insurance while it is in the truck?