Retail
Inventory in Transit (FOB Shipping Point)
Recording inventory that is on the way but legally owned by the company during transit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory in Transit | Asset (+) | 5,000.00 | - |
| Accounts Payable | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
If the shipping terms are 'FOB Shipping Point', the buyer owns the goods as soon as they leave the seller's warehouse. You must record them even if they haven't arrived at your dock yet.
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