Merchandise that has been shipped by a supplier but the merchandise has not yet reached the
customer's location. Goods in transit that were shipped FOB Shipping Point should be included
in the customer's purchases and inventory. Goods in transit that were shipped FOB Destination
should be reported in the supplier's inventory.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.