$-$Current liabilities such as accounts payable or wages payable are typically recorded at:

a$.$ Present value. b$.$ Fair value. c$.$ Market value. d$.$ Settlement value. e$.$ None of the answers provided are correct.

$-$On $12-28-$YR$01,$ Honda Inc. placed an order for automobile air bags with credit terms of $3/10,$ n$/60.$ The goods were

shipped on $12-30-$YR$01$ and Honda was notified of this fact on $1-2-$YR$02.$ At Honda$$s yearend, $12-31-$YR$01,$ the air bags

were in transit and were eventually delivered to Honda on $1-4-$YR$02.$ Honda$$s financial statements for the year ended

$12-31-$YR$01$ were prepared and issued on $1-31-$YR$02.$

Select the best answer below regarding whether Honda should report a liability for this merchandise on its

$12-31-$YR$01$ balance sheet.

a$.$ Since Honda knew the goods were shipped in YR$01,$ a liability should be reported on the $12-31-$YR$01$ balance sheet.

b$.$ If the goods were shipped FOB Shipping Point, a liability should be reported on the $12-31-$YR$01$ balance sheet.

c$.$ If the goods were shipped FOB Destination, a liability should be reported on the $12-31-$YR$01$ balance sheet.

d$.$ No liability should be recorded on the $12-31-$YR$01$ balance sheet since the goods were not received in YR$01.$

e$.$ None of the answers provided are correct.