Margie Runs an Eclectic Furniture Gallery in an Upscale Area

Essay

Margie runs an eclectic furniture gallery in an upscale area in a college town.Margie purchases her inventory from numerous sources.Margie has been having financial difficulties of late,and is not able to pay for her two most recent purchases.On May 5 she decides that she will not pay for these.The first shipment of a few tables has already been delivered.These were tables out of the seller's ordinary stock.Margie will have to ship them back.They were received on April 15 and payment is due on May 15.Margie sends an e-mail to the supplier saying that she will not be keeping the tables and will send them back soon.The second purchase has not yet been shipped.These chairs were custom designed by Margie and a friend and then built-to-order by a furniture maker.They are in the warehouse awaiting shipment.Margie sends the sales rep at the furniture maker an e-mail on May 5 saying that she cannot accept shipment because she cannot pay.Discuss the risk of loss status for both groups of items.