On December 27, 2021 Delicious Cat Treats ships 50 boxes of cat treats to Precious Pet Store. The terms are FOB destination and Precious Pet Store receives the boxes on cember 31, 2022. Although it is shipped FOB destination, which indicates that ownership rests with the seller (Delicious Cat Treats), it arrived by December 31st (the date when inventory was counted) so Precious Pet Store must include the value of this inventory in their ending inventory on their balance sheet. On December 27, 2021 Delicious Cat Treats ships 50 boxes of cat treats to Precious Pet Store. The terms are FOB destination and Precious Pet Store receives the boxes on cember 31, 2022. Although it is shipped FOB destination, which indicates that ownership rests with the seller (Delicious Cat Treats), it arrived by December 31st (the date when inventory was counted) so Precious Pet Store must include the value of this inventory in their ending inventory on their balance sheet