should they be recorded when payment is made for them, or when the buyer receives the bill, or an order is made for the product, or title transfers from the seller to the buyer of the product????
2007-09-10 10:30:59 · 3 answers · asked by WHHHAT??? 1 in Business & Finance ➔ Other - Business & Finance
After you buy it even if it is still on credit or you bought it with cash.
2007-09-10 10:39:22 · answer #1 · answered by Brendan L 3 · 0⤊ 0⤋
Depends on who bears the risks. If the buyer bears the risks as soon as the ship sails, then when you receive a copy of the bill of lading, you record it as goods in transit. When the goods arrive you reverse it out of goods in transit to merchandise inventory. If the seller bears the risks until you receive the goods, then you record the purchase when you take delivery of the goods. The site has a very chapter on merchandise purchases.
2007-09-10 19:31:45 · answer #2 · answered by Sandy 7 · 0⤊ 0⤋
In most cases when the risk of ownership is transferred or the goods are received or delivered. The best answer above would typically be when title transfers.
2007-09-10 17:30:37 · answer #3 · answered by Milton W 2 · 0⤊ 0⤋