kristins boutiques has identified the following items for possible inclusion in its december 31 inventory…

kristins boutiques has identified the following items for possible inclusion in its december 31 inventory. which of the following would not be included in the year - end inventory?\nmerchandise purchased fob shipping point was picked up by the freight company but had still not arrived at kristins boutique as of december 31.\nkristin has in its warehouse merchandise on consignment from abby co.\nkristin has sent merchandise to various retailers on a consignment basis.\nkristin has merchandise on hand which has been returned by customers because of wrong size.

kristins boutiques has identified the following items for possible inclusion in its december 31 inventory. which of the following would not be included in the year - end inventory?\nmerchandise purchased fob shipping point was picked up by the freight company but had still not arrived at kristins boutique as of december 31.\nkristin has in its warehouse merchandise on consignment from abby co.\nkristin has sent merchandise to various retailers on a consignment basis.\nkristin has merchandise on hand which has been returned by customers because of wrong size.

Answer

Brief Explanations:

Inventory includes goods for which the company has ownership rights. For FOB shipping - point purchases, ownership transfers at the shipping - point, so the first option is part of inventory. Goods on consignment held by the company (from Abby Co.) are not the company's inventory as the consignor retains ownership. Goods sent on consignment by the company still belong to the company until sold by the consignee. Returned goods due to wrong size are the company's inventory as they are back in the company's possession.

Answer:

Kristin has in its warehouse merchandise on consignment from Abby Co.