WendyEller2-EthicsLesson-Unit8 - Class,

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Class, When the title to merchandise passes from seller to the buyer depends upon the terms of the  sale, which also determines who bears the cost of freight in moving the merchandise from the  seller to the buyer. If the seller pays the freight cost, the title does not pass to the buyer until the  merchandise is delivered to the buyer. Scenario: Beeson Company is experiencing a decrease in sales and operating income for the  fiscal year ending December 31 st , 2008. Julia Faure, a controller of Beeson Company, has  suggested that all orders received before the end of the fiscal year be shipped by midnight,  December 31 st , 2008, even if the shipping department must work overtime. Since Beeson  Company ships all merchandise FOB shipping point, it would record all such shipments as sales  for the year ending December 31 st , 2008, thereby offsetting some of the decreases in sales and 
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This note was uploaded on 12/08/2009 for the course AC114 AC114 taught by Professor Duchac during the Fall '09 term at Kaplan University.

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WendyEller2-EthicsLesson-Unit8 - Class,

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