Answer
Yes. The client has a liability for the merchandise and the freight.
Work Step by Step
Purchased goods in transit at the end of an accounting period to which legal title has passed should be recorded as purchases within the specific accounting period. If goods are shipped f.o.b. shipping point, this means that the title of ownership passes to the buyer when the seller delivers the goods to the common carrier. Usually, when the terms are f.o.b. shipping point, transportation costs must be paid by the buyer. This liability arises when the common carrier completes the delivery. As a result, the client bares the liability for the goods as well as the freight.
