This case focuses on the following student learning objectives in this module as it relates to the course objectives (CO) described under the Getting Started - About This Course page:

Distinguish between service and merchandising operations.	CO1
Explain the difference between periodic and perpetual inventory systems.	CO1
Analyze purchase transactions under a perpetual inventory system.	CO2, CO3
Analyze sales transactions under a perpetual inventory system.	CO2, CO3

General Instructions:

For this discussion board, you will have an opportunity of considering how to account for inventory transportation costs. You will define FOB shipping point and FOB destination and consider which applies to accounting situations. After the review of your fellow student's work, you will define perpetual inventory system and periodic inventory system.

Detailed Instructions: Initial Post due by Wednesday at 23:59 pm EST

• Define FOB shipping point and FOB destination

Then, consider and respond to the following.

XO Group sells merchandise to companies (and individuals) for significant milestones in life, such as getting married, moving in together, and having a baby. Indicate (yes/no) whether the following costs should be recorded in the Inventory account in XO's perpetual inventory system.

1. Transportation costs incurred by XO Group when it busy goods from suppliers under terms FOB shipping point.

2. Transportation costs incurred by XO Group when it delivers goods to customers under terms FOB destination.

3. Transportation costs incurred by XO Group's customers when XO Group sells goods under terms FOB shipping point.