Question
Tablet Direct is a direct marketer of computer hardware, software, peripherals, and electronics. In a recent annual report, the company reported that its revenue is
Tablet Direct is a direct marketer of computer hardware, software, peripherals, and electronics. In a recent annual report, the company reported that its revenue is "recognized upon receipt of the product by the customer." |
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1. | Indicate whether Tablet Direct's sales terms are FOB shipping point or FOB destination. | |||||
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2a. | Assume Tablet Direct sold inventory on account to eCOST.com on December 28 that was to be delivered January 3. The inventory cost Tablet Direct $30,500 and the selling price was $41,000. What amounts, if any, related to this transaction would be reported on Tablet Directs balance sheet and income statement in December? (Select all that apply.) |
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