one question please fill in the blanks then its just a multiple choice..

If ending inventory overstated, COGS will be BLANK which means net income will be BLANK

Inventory purchased would be included in Inventory while in transit if FOB BLANK.

Which items should not be included in the value of bad companies merchandise inventory

a.1000 goods sold by Bad to another company. The goods are entranced in shipping terms are FOB destination

b.2000 goods sold by another company to bad. The goods are in transit and shipping terms are FOB destination.

c.3000 owned by bad but in the possession of another company, the consignee

d.3000 goods sold by another company to bad. The goods are in transit and shipping terms are FOB shipping point.