I don't understand what the dates have to do with deciding who owns the FOB.

Chapter 7_Graded Homework Mark Pro Layout References Mailings Review View Help Search A A A A E 21 T * A.D.A. EEEE.. Paragraph abbed AaBbcend AaBbc AaBbcc AaB AaBbCcDAoBbceDd Aalbod AaBbc Normal No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis intense Styles Problem #2: Rockbridge Bank is considering giving Lock Company a loan. Before doing so, it decides that further discussions with Lock's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $275,000. Discussions with the accountant reveal the following: 1. Lock sold goods costing $55,000 to Key Company FOB shipping point on December 28. The goods are not expected to reach Key until January 5. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Lock FOB destination on December 27 and were still in transit at year end. 3. Lock received goods costing $25,000 on January 2. The goods were shipped FOB shipping point on December 26 by Door Co. The goods were not included in the physical count. 4. Lock sold goods costing $51,000 to Fisher of Nebraska FOB destination on December 30. The goods were received in Nebraska on January 4. They were not included in Lock's physical inventory. 5. Lock received goods costing $42,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $275,000 Required: Determine the correct inventory amount on December 31 Year-end Balance: $275,000 Adjusted Balance: $ 309,000 Display Settings