B is corrent because when goods are shipped FOB destination, title does not pass to the buyer until the goods have been delivered. The purchase and related liability will not be recorded by Dwyer until title passes, which is on the date the supplies are received—January 3, year 2.
A is incorrect because accounts payable are never recorded when goods are ordered.
C is incorrect because when goods are shipped FOB destination, title does not pass to the buyer until the goods have been delivered. The purchase and related liability will not be recorded by Dwyer until title passes, which is on the date the supplies are received—January 3, year 2.
D is incorrect because when goods are shipped FOB destination, title does not pass to the buyer until the goods have been delivered. The purchase and related liability will not be recorded by Dwyer until title passes, which is on the date the supplies are received—January 3, year 2.
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