Accrual Accounting

[Wilson88]

Hi all.

Let's say my inventory balance at the end of year (300909) includes a credit purchase of $5000. the purchase was in transit on 300909, under FOB destination.

Under accrual accounting,
Is there any corrections i need to make for the inventory balance?

Thanks. )

Regards,
Wilson

[danishayub_76]

Dear.

It shall be recorded as asset "Goods in Transit".