Answer:
(1) FOB Destination and (4) FOB Shipping Point
Explanation:
(1) When selling with terms of "FOB Destination" the seller (Tidwell) still owns the inventory when it is still in transit at period end (Dec 31).
(4) When purchasing with terms of "FOB Shipping Point" the purchaser owns the inventory the moment it left the seller's area, so Tidwell already owns the inventory even though it is still in transit.
"Shipping Point" is the Seller's Area
while "Destination" is the Buyer's Area
So when the phrase "Free On Board" is added on that term, it means that it does not own the inventory when in transit.
To Simplify:
FOB Shipping Point = Seller doesn't own the inventory when in transit.
FOB Destination =Buyer doesn't own the inventory when in transit.
