Often, a company like Walgreens purchases merchandise that remains in transitnot yet receivedat the end of a fiscal period. The accounting for these shipped goods depends on who controls the merchandise Companies like Walgreens and Walmart are often going through inventory very quickly therefore it is likely to see inventory in transit. It is important to always be paying attention to the industry that the company is operating in to understand what is going on with the inventory when it comes to the balance sheet

Why would Walgreens purchase inventory and have it in transit at the end of the year?