Question
Which of the following items would not be included as part of the inventory balance of Clair Inc. on December 31, 2020? Select one: A.
Which of the following items would not be included as part of the inventory balance of Clair Inc. on December 31, 2020?
Select one:
A. Clair shipped $16,000 of goods to a customer; however, Clair retains legal title of the goods until the goods are sold to the final customer. The customer may return the goods at any time.
B. Clair shipped $2,000 of goods to a customer, terms f.o.b. shipping point, that are still in transit.
C. Clair purchases $4,000 of goods from a vendor, terms f.o.b. shipping point, that are still in transit.
D. Clair sold goods to a customer for $5,000, but the contract obligates Clair to buy back the inventory in 90 days.
Please provide correct answer ASAP. thank you
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