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On December 29, 2009, Wolfe Company ships $100,000 of merchandise by common carrier to the Audio Midwest Company. The terms of the sale are 2/15,

On December 29, 2009, Wolfe Company ships $100,000 of merchandise by common carrier to the Audio Midwest Company. The terms of the sale are 2/15, n/30, FOB destination. It takes five days for the merchandise to arrive at Audio Midwest. Wolfe and Audio Midwest have December 31 year-ends. Which company should report the merchandise on their balance sheet? Why?

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