Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 90

Items Included in Inventory
Explain whether the following items should be included in the inventory of The Knot, Inc. , a company that arranges and supplies wedding services for couples and other wedding consultants.
a. Goods are being held by The Knot on consignment from Emerald Bridal.
b. Goods in transit to Winston Wedding Consultants, sold by The Knot FOB shipping point.
c. Goods in transit to The Knot, purchased by The Knot FOB shipping point.