Module 1
Sale of a product
Income Statement
1. Sales Revenue
2. Cost of Goods Sold
Balance sheet
1. AR
2. Inventory
Inventory Is the product you sell to the customer.
Goods in transit – goods being shipped from the seller to the buyer and thus on board a truck,
train, ship, or plane.
Who owns the goods in transit? It depends Shipping terms
Two common Shipping points
1. FOB (free on board) shipping point – ownership of goods passes to buyer as soon as the
goods are shipped
2. FOB des,na,on point – ownership of goods remains with the seller un,l the goods
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