Answer
1)
1 - a
2 - i
3 - ii
2) - b
Work Step by Step
a) - The merchandise will be included in the inventory of the
company that has legal title of these goods.
i) - Bradshaw's will include the merchandise in its inventory,
when the terms are FOB destination. Ownership of the goods passes
to the buyer, when it reaches to the destination.
ii) - Ecklund's will include the merchandise in its inventory,
when the terms are FOB. Ownership of the goods passes
to the buyer, when the public carrier accept the goods from
the seller.
Bradshaw company include consigned goods in its inventory, as
the consignee do not take the ownership of goods remained unsold on
the date of inventory taken.
