Under what circumstances should Jovad Company include consigned goods in its inventory?

a. Jovad Company ships merchandise to Martin Company on December 30. The merchandise reaches the buyer on January 6.
Indicate the terms of sale that will result in the goods being included in (1) Jovad’s December 31 inventory, and (2) Martin’s
December 31 inventory.

b. Under what circumstances should Jovad Company include
consigned goods in its inventory?

. Topp Hat Shop received a shipment of hats for which it paid the
wholesaler $2,970. The price of the hats was $3,000 but Topp was
given a $30 cash discount and required to pay freight charges of $50.

What amount will Topp record for inventory? Why?