Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 5 - Balance Sheet and Statement of Cash Flows - Questions - Page 279: 16i

Answer

Materials in transit are not to appear in the balance sheet of the buyer in this case. Though the buyer may have already paid, the goods in transit remain the property of the seller, and should anything happen while in transit, he/she is liable.

Work Step by Step

Though the buyer may have already paid, the goods in transit remain the property of the seller, and should anything happen while in transit, he/she is liable.
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