- You are an accounting student at Berkeley College and will not graduate for another year. But
because of your excellent grades so far, you have been able to land a job in the purchasing
department of a retailer. One of the purchasing agents in your company is negotiating for the
receipt of a very large order of uninsured goods from a supplier. The purchasing agent is able to get
a better deal on the goods if they are shipped FOB shipping point rather than FOB destination. The
agent doesn’t know the difference between these two concepts. He also doesn’t understand why
choosing one over the other should make any difference to the company. As a student of
accounting at Berkeley College, you know well the difference between these 2 concepts and you
know why one would be a better choice over the other in the case of uninsured goods. Please
explain these two concepts in this discussion and tell the purchasing agent which shipping method
is preferable and why. In addition to your response, please comment to at least one classmate’s
post including information from Chapter 6 in your eText. - Explain the difference between the Perpetual and Periodic inventory systems and let us know
why anyone would use Periodic inventory in this computerized age.
Sample Solution