On december 15, 2019 Flanagan company purchased goods costing 100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?
On december 15, 2019 Flanagan company purchased goods costing 100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...
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On december 15, 2019 Flanagan company purchased goods costing 100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows:
Normal freight charges $3,000
Handling costs 2,000
Insurance on shipment 500
Abnormal freight charges for express 1,200
Shipping
The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?
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