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On December 27, 2020, Tavares Industries shipped goods via UPS to Fortin Department Stores under FOB Destination shipping terms. The goods arrived at Fortin Department Stores on January 3, 2021.

1a) Shipping Terms #1

Which of the following statements correctly describes the recording of the sale by Tavares Industries?

Multiple Choice: 1) Tavares recorded sales revenue and accounts receivable from Fortin on December 27, 2020) or 2) Tavares accrued sales revenue and accounts receivable from Fortin on December 31, 2020) or 3) Tavares recorded sales revenue and accounts receivable from Fortin on January 3, 2021) or 4) None of the statements accurately reflect the proper accounting treatment by Tavares)

1b) Shipping Terms #2

Which of the following statements correctly describes the treatment of the goods in-transit at December 31, 2020?

Multiple Choice: 1) Fortin Department Stores includes the goods in its inventory at December 31, 2020) or 2) Tavares Industries includes the goods in its inventory at December 31, 2020) or 3) Both companies include the goods in their inventories at December 31, 2020 as both have claims to the goods) or 4) Neither company includes the goods in its inventory at December 31, 2020 as the goods are in the possession of UPS)

1c) Shipping Terms #3

Which of the following statements correctly describes the treatment of the freight charges?

Multiple Choice: 1) Fortin is responsible for the freight charges and records them as Freight-in as part of the cost of its inventory) or 2) Fortin is responsible for the freight charges and records them as Delivery Expense as part of the cost of its inventory) or 3) Tavares is responsible for the freight charges and records them as Freight-in as part of its cost of goods sold) or 4) Tavares is responsible for the freight charges and records them as Delivery Expense as part of its selling expenses)