destination. Which of the following statements correctly identifies who is to Julie Beth Company bought goods from Lisel Company, with shipping terms FOB pay the freight bill when the title is transferred?
Q: Which of the following should be included in the physical inventory of a company? O A. Goods held on…
A: Solution: "Goods in transit from another company shipped FOB shipping point" should be included in…
Q: Merchandise purchased fo Freight In... Freight Out.. Purchased returns..
A: Before calculating the inventoriable costs,for better understanding,firstly we need to understand…
Q: Which one of the following transactions is recorded with the same entry in a perpetual and a…
A: With the perpetual system all the sales are directly credited to inventory and all the purchases are…
Q: Under the perpetual inventory system, the journal entry to record the freight paid by the seller on…
A: Under perpetual inventory system, inventory account is used instead of purchases account. For every…
Q: Goods in transit are recorded as closing inventory of the buyer when
A: Goods in transit is the middle process where the goods are in between the buyer and the seller. it…
Q: The “Shipment to Branch” account is added to the home office’s purchase account in determining home…
A: While determining the cost of goods sold, the shipment would be added to the office purchase.…
Q: Purchase-related transactionsThe debits and credits from four related transactions, (1) through (4),…
A: a. To determine Purchases is an activity of acquiring the merchandise inventory of a business. To…
Q: When goods are shipped FOB destination and the buyer pays the freight charges, the buyer A.…
A: FOB destination means freight on board that means that the seller is responsible for the freight…
Q: FOB destination of a Merchandise Business means: a. Seller is not responsible for the goods b. Buyer…
A: Whenever business sells goods to the customer, then there can be two type of terms. One is FOB…
Q: The Yankee Wholesale Company sells merchandise to a variety of retailers. Yankee uses different…
A: Hello, I am only answering first three subparts as per the policy and if you want others to be…
Q: Which of the following should be included in the physical inventory of a company? A) Both goods in…
A: When the goods in transit are shipped FOB shipping point, This means the seller was only responsible…
Q: Which of the following accounts would be included in the chart of accounts of a merchandising…
A: Periodic Inventory System: A periodic inventory system is a form of inventory valuation where the…
Q: Which of the following is reported as part of the operating expenses? Cost of sales…
A: The question is based on the concept of Business Accounting.
Q: Distinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will…
A: The letter FOB means Free On Board. Those goods that are placed free onboard the carrier by the…
Q: When goods in transit are shipped f.o.b shipping point they shoule be included in the inventory of…
A: Solution: Goods in transit shipped FOD destination should belongs to buyer as they once shipped…
Q: Listed below are several terms and phrases associated with inventory measurement. Pair each item…
A: FIFO : First-in-first-out LIFO : Last-in-first-out Gross method : The sales / purchases are recorded…
Q: Amex Stores should include which of the following items in its inventory at the statement of…
A: solution concept we should always consider the following points while valuing the inventory goods…
Q: Which of the following accounts will not be found in the cost of merchandise sold section of the…
A: Income statement: The income statement is a financial statement that shows the net income earned or…
Q: n perpetual method, _______________ will be credited if an item bought will be returned. Cost of…
A: In perpetual method, Merchandise Inventory will be credited if an item bought will be returned. Cost…
Q: ABC Company has shipped goods to one of its customers FOB destination. ABC Company will recognize…
A: >There are two kind of arrangement of purchase/sale transactions:#1: FOB Shipping point, and#2:…
Q: Goods in transit are included in a purchaser's inventory: Multiple Choice O At any time during…
A: The sales invoice includes the shipping costs and details as FOB shipping, FOB destination.
Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…
A: T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this…
Q: Income Summary is closed to what account Income accounts O Expense Accounts Owner's equity account O…
A: all the incomes and expenses are closed by transferring the accounts to the income statement. The…
Q: XYZ Company hires third party to deliver goods to their customer on FOB destination, freight…
A: Solution: Freight paid on sale in case of FOB destination is freight out expense for seller.
Q: he entry to record the sale of goods on account uses a perpetual system and comprises a
A: Here is the Answer:
Q: If the buyer is to pay the freight costs of delivering merchandise, delivery terms are stated as Da.…
A: Cost of goods sold: It refers to the overall cost incurred by a company for the production of the…
Q: Using the following accounts, classify each of them as part of cost of sales (COS), selling expense…
A: Cost of sales means total cost of goods that are being sold to the customers. It includes total…
Q: Which of the following items should be included in a company's inventory at the balance sheet date?…
A: Inventory is the current asset which is being held by the entity for the purpose of sale.
Q: Which of the following would not be reported as inventory? A. Goods out on consignment B. Goods in…
A: Hi student Since there are multiple question, we will answer only first question.
Q: The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping…
A: FOB destination stands for freight on board, is an incoterm which is used when there is trade…
Q: The Yankee Wholesale Company sells merchandise to a variety of retailers. Yankee uses different…
A: FOB Shipping point: When the goods are in transit then the buyer of goods become the owner of goods…
Q: FOB SHIPPING POINT, who is the owner of goods in transit
A: The invoice made at the time of sale includes the invoice price, payment terms, discount terms, etc.…
Q: Which of the following is not a characteristic of FOB Destination?A. The seller pays for shipping.B.…
A: FOB (Freight on Board) Destination seems to be a shipping terminology that signifies the seller…
Q: The ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the…
A: The invoice is prepared at the time of sale of goods on credit. The invoice details about the…
Q: Which of the following should be included in inventory on the balance sheet? Goods out on approval…
A: Goods purchased that are in transit F.O.B destination and raw materials will be recorded and…
Q: b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a…
A: Inventory is the stock that an entity owns for selling in the market. It represents the goods that…
Q: Roadway Company purchases inventory from Fedway Company with the shipping terms FOB destination.…
A: The commodities or materials which are held by the company for manufacturing or sale purposes are…
Q: When inventory is shipped from the seller to the buyer with shipping terms of FOB destination: O A.…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Details of invoices for purchases of merchandise are as follows: Invoice Merchandise Freight…
A: Invoice: When the buyer sells his goods in credit or cash to a seller. He then sends the details of…
Q: Indicate the best answer(s) for each question: Which of the following statements about perpetual…
A: Under perpetual inventory system, the inventory record is maintained with every sale and purchase.
Q: When the transportation charges are paid by the seller, merchandise is shipped a. FOB destination…
A: Transportation charges are charges that are being paid for freight charges from the point of seller…
Q: The journal entry to record the payment of freight cost under the perpetual inventory system is as…
A: Given transaction is: Payment of freight cost under the perpetual inventory system
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- Selling Expenses and General and Administrative Expenses Operating expenses are subdivided between selling expenses and general and administrative expenses when a multiple-step income statement is prepared. Identify each of the following items as a selling expense (S) or general and administrative expense (G$A). ______ 1. Advertising expense ______ 2. Depreciation expense—store furniture and fixtures ______ 3. Office rent expense ______ 4. Office salaries expense ______ 5. Store rent expense ______ 6. Store salaries expense ______ 7. Insurance expense ______ 8. Supplies expense ______ 9. Utilities expensePlease help me to answer this question and give explanations for each answer. Thank you very very much For each of the independent events listed below, analyze the impact on the indicated items at the end of the current year by placing the appropriate code letter in the box under each item. Code: O = item is overstated U = item is understated NA = item is not affected Events Items Assets Owner’s Equity Cost of Goods Sold Net Income 1. A physical count of goods on hand at the end of the current year resulted in some goods being counted twice. 2. The ending inventory in the previous period was overstated. 3. Goods purchased on account in December of the current year and shipped FOB shipping point were recorded as purchases, but were not included in the count of goods on hand on December 31 because they had not arrived by December 31.…Fedora’s Vases experienced all of the following events during the month of September 2020. For each transaction, give the correct amount of revenue and expense to be recognized. If nothing should be recognized, enter 0 for your answer. Purchased $6,400 of shipping bubble wrap on account. Revenue recognized: Expense recognized: Used half the bubble wrap purchased above. Revenue recognized: Expense recognized:
- 22( Anwar Mart has the debit balance of Cost of goods sold RO 86,400 and Commission paid of RO 4,300 in its adjusted trial balance. How would write the Closing entry to adjust the trial balance of the above business? a. Cost of goods sold RO 90,700 Dr / Income summary RO 90,700 Cr b. None c. Cost of goods sold RO 86,400Dr/Commission RO 4,300Dr/ Income summary RO 90,700 Cr d. Income summary RO 90,700 Dr/Cost of goods sold RO 86,400Cr/Commission RO 4,300CrWhich of the following is expensed under the principle of systematic and rational allocation a. salespeople's monthly salariesb. insurance premiumsc. transportation to customersd. electricity to light office buildingMr. Asif is an accountant. Purchase of Merchandise on credit for OMR 75000 was entered in Furniture Account for OMR 75000 but he posted Accounts payable entry is correct. Which of the following rectification entry is correct? a. Debit Accounts payable RO 75000 Credit Furniture RO 75000 b. Debit Purchase RO 75000 Credit Accounts payable account RO 75000 c. Debit Purchase RO 75000 Credit Furniture RO 75000 d. Debit Purchase RO 75000 Credit Cash RO 75000
- Problem I- Jim Tenorio operates Scent Company, a perfume and soap store. During May 2020, the following transactions were completed. May 1- Purchased merchandise from Jack Store, P 8,960, including VAT. Terms: 2/10, n/30. 3- Defective goods were returned to Jack Store, P1,000, VAT excluded. 8- Sold merchandise on account to Rustans, P11,200, VAT included. Terms: 2/10, n/30. 10- Purchased merchandise from Myrna Store, P 10,000 plus 12% VAT. Terms: 2/10, n/30, FOB shipping point. 10- Paid freight for the above goods, P500. 11- Paid in full the account to Jack Store. 15- Recorded cash sales for the first half of May, P30,000, plus 10% VAT. 16- Sold merchandise on account to SM, P8,000 plus 12% VAT. Terms 10 and 2, n/60, FOB destination. 16- Paid freight for the above goods, P250. 17- Received defective goods from Rustans, P2,240, VAT included. 18- Received a check from Rustans for the amount owed on the May 8 sale. 25- Paid in full the account to Myrna Store. 30- Collected in full the…#3) Prepare and income statement, statement of owners equty and balance sheet for Rabid Insect based on the information below Salary Expense 28,500.00 Rent Expense 14,250.00 Insurance Expense 9,500.00 Depreciation Expense 4,750.00 Miscellaneous Expense 1,900.00 Sales Returns/Allowance 5,000.00 Sales Discounts 7,500.00 Cost of Goods Sold 142,500.00 Accts Payable 30,000.00 Note Payable solve Equipment 400,000.00 Accum Depreciation (160,000.00) Accts Receivable 20,000.00 Mdse Inventory 60,000.00 Prepiaid Insurance 10,000.00 Cash 100,000.00 Capital 1/1 (beginning) 187,500.00 Drawing (5,415.00) Cost of Goods Sold 142,500.00…Following are the adjustment data for Bruno Company: a-b. Merchandise inventory (ending), $1,045. c. Professional fees earned, $32,100. d. Supplies inventory (on hand), $1,415. e. Insurance expired, $750. f. Depreciation of office equipment, $300. g. Wages accrued, $630. Record these data in the Adjustments column of the following work sheet. If an amount is zero, enter "0". Bruno CompanyWorksheet TRIAL BALANCE ADJUSTMENTS ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT Cash 32,725 fill in the blank 9c8eb9003064f9b_1 fill in the blank 9c8eb9003064f9b_2 Accounts Receivable 960 fill in the blank 9c8eb9003064f9b_3 fill in the blank 9c8eb9003064f9b_4 Merchandise Inventory 1,250 fill in the blank 9c8eb9003064f9b_5 fill in the blank 9c8eb9003064f9b_6 Supplies 1,525 fill in the blank 9c8eb9003064f9b_7 fill in the blank 9c8eb9003064f9b_8 Prepaid Insurance 930 fill in the blank 9c8eb9003064f9b_9 fill in the blank 9c8eb9003064f9b_10 Office…
- Mrs. Clean Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Mrs. Clean uses the perpetual inventory system. During December 2018, Mrs. Clean completed the transactions found in the second picture. Complete the journal entries found in the first picture using the transaction information in the second picture.The following information was taken directly from the footnotes to the financial statements ofBest Buy:1. “We recognize revenue at the time the customer takes possession of the merchandise.”2. “We sell gift cards to customers and initially establish an Unredeemed Gift Card Liability forthe cash value of the gift card.”3. “Advertising costs are recorded as expenses the fi rst time the advertisement runs.”4. “We compute depreciation using the straight-line method.”a. Discuss what is meant by each of the above footnote items.b. As noted, Best Buy uses a Unredeemed Gift Card Liability account to record the sale of giftcards. Assume that you purchase a $500 gift card from Best Buy as a birthday present for afriend. Prepare the journal entries made by Best Buy to record (1) your purchase of the giftcard and (2) the use of the gift card by your friend to purchase a $500 television.c. Discuss how the matching principle relates to Best Buy ’s treatment of advertisingexpenditures.Determine the value received and value parted with for the following transactions:Value Received Value Parted With d) Paid the balance of P350 on a typewriterpreviously purchased on account.e) Purchased office supplies.