1. Jolie Company has shipped $500 of goods to China Co., and China Co. has arranged to sell the goods for Jolie. Identify the consignor and the consignee. Which company should include any unsold goods as part of its inventory?
2. At year-end, Jolie Co. had shipped $850 of merchandise FOB destination to China Co. Which company should include the $850 of merchandise in transit as part of its year-end inventory?
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