Question

A company sells a product FOB destination. The product is shipped on December 29, 2015 and the customer receives the shipment on January 3, 2016. Which of the following is true? Question 4 options: The sale will be recorded when the customer's credit card information is received. The sale will be recorded when the shipment is received by the customer. The sale will be recorded when the shipment is shipped. The sale will be recorded when it is known there will be no returns or allowances.

Answer 1

The sale will be recorded when the shipment is received by the customer.

Step-by-step explanation:

FOB destination: FOB stands for Free on board destination. It means that the goods are shipped to the buyer and the buyer will receive the goods shipped by the seller.

In this, the seller pays the freight charges and the responsibility of the goods if of the seller when the goods are in transit.

So, the sale will be recorded when the shipment is received by the customer.

Hence, all other options are wrong