n its annual report, American Eagle Outfitters states that its e-commerce operation records revenue upon the estimated customer receipt date of the merchandise.

Required:

1. Is this FOB shipping point or FOB destination?

multiple choice 1

• FOB shipping point

• FOB destination

2. If American Eagle were to change to the other terms of shipment, would it report its Sales Revenues earlier or later?

multiple choice 2

• Earlier

• Later