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Question
Kristin’s Boutique has identified the following items for possible inclusion in its December 31 inventory. Which of the following would not be included in the year-end inventory?
a. Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin’s Boutique as of December 31.
b. Kristin's has merchandise on consignment from Abby Co. in its store.
c. Kristin's has sent merchandise to various retailers on a consignment basis.
d. Kristin's has merchandise on hand that has been returned by customers because of wrong size.
Answer
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