Question:Ritz & Co. agreed to purchase certain inventory items from Hostess Corporation. The Hostess shipped the goods F.O.B. destination. On December 31, the Ritz's accounting year-end, they were aware that the goods had been shipped and would be received any day. 

A TheRitz should include the goods in its inventory calculated on December 31. 
B TheRitz should include the goods in its inventory calculated on December 31 but should not record the obligation to pay for them. 
C TheRitz should not include the goods in its inventory calculated on December 31 but should include the related payable on its balance sheet on December 31. 
D TheRitz should not include the goods in its inventory calculated on December 31 and should not include the related payable on its balance sheet on December 31. 

+ Answer
D 

+ Explanation
answer not sure

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Md. Habib Ullah

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