In June 2018, Park Hospital purchased medicines from Jove Pharmaceutical Company at a cost of $2,000. However, Jove notified Park that the invoice was being canceled and the medicines were being donated to Park. Park should record this donation of medicines as a. a memorandum entry only. b. other operating revenues of $2,000. c. a $2,000 credit to Operating Expenses. d. a $2,000 credit to Nonoperating Expenses.
In June 2018, Park Hospital purchased medicines from Jove Pharmaceutical Company at a cost of $2,000. However, Jove notified Park that the invoice was being canceled and the medicines were being donated to Park. Park should record this donation of medicines as a. a memorandum entry only. b. other operating revenues of $2,000. c. a $2,000 credit to Operating Expenses. d. a $2,000 credit to Nonoperating Expenses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In June 2018, Park Hospital purchased medicines from Jove Pharmaceutical Company at a cost of $2,000. However, Jove notified Park that the invoice was being canceled and the medicines were being donated to Park. Park should record this donation of medicines as
a. a memorandum entry only.
b. other operating revenues of $2,000.
c. a $2,000 credit to Operating Expenses.
d. a $2,000 credit to Nonoperating Expenses.
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