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dmitriy555 [2]
3 years ago
14

Q 6.30: Rollins Technology is determining ending inventory. In the inventory process, Rollins inadvertently miscategorized a $9,

600 shipment of FOB destination goods in transit to a customer as FOB shipping point. What should Rollins do to correct this error?
Business
1 answer:
Musya8 [376]3 years ago
5 0

Answer:

Rollins Technology should the $9,600 inventory to the value of their inventory count

Explanation:

FOB destination means the goods become the buyer's when they are at delivery point,which means that until then they are goods of Rollins Technology

Mis-categorizing such goods as FOB shipping point implies that they were assumed to belong to the owners once shipped,all that is required is for the company to restate the value of the goods in transit by adding it back to the its inventory.

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