Answered: Once arrived at port of Le Havre, the…

Business

Accounting

Once arrived at port of Le Havre, the shipment is

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 7P

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Exquisite Exports inc. based in St-Jérôme, QC sells products to Total S.A. in Paris, France, under the following terms: Terms of sale: CPT, port of Le Havre, Incoterms 2020 20 wooden pallets with Maple syrup loaded in on 40-ft ocean container Terms of delivery: ocean freight Terms of payment: open account, net 60 days The container accumulated detention charges at origin for 300USD due to cargo readiness issue. Who is responsible to pay the charges?
Determine the buyer’s and seller’s responsibility in a commercial transaction. Exquisite Exports inc. based in St-Jérôme, QC sells products to Total S.A. in Paris, France, under the following terms: Terms of sale: CPT, port of Le Havre, Incoterms 2020 20 wooden pallets with Maple syrup loaded in on 40-ft ocean container Terms of delivery: ocean freight Terms of payment: open account, net 60 days Who selects the freight forwarder and pays the ocean freight charges?
Exquisite Exports inc. based in St-Jérôme, QC sells products to Total S.A. in Paris, France, under the following terms: Terms of sale: CPT, port of Le Havre, Incoterms 2020 20 wooden pallets with Maple syrup loaded in on 40-ft ocean container Terms of delivery: ocean freight Terms of payment: open account, net 60 days The container gets unloaded at Total’s warehouse in Paris. During the unloading process, the cargo is damaged. Who bears the loss related to this damage?
Aranda Company is an import-export company that relocated earlier this year in a foreign trade zone (FTZ) in a southwestern city. The company imports $760,000 of fabric from overseas for resale to clothing companies located in the United States. Aranda purchases and receives the fabric about four months before it is sold and shipped to customers; customers are billed and pay in two months. Duty is assessed at 15 percent of cost, and Aranda faces a 6 percent carrying cost. $1 = Y106.0 $1 = E0.84 Required: 1. What is the cost of the Y6,890,000 in dollars? 2. How many euros will Chinook receive from the German company in payment for the finished product? 3. What if the exchange rate of dollars for yen was $1 = Y108? What is the cost of the Y6,890,000 in dollars (rounded to the nearest dollar)?
Aranda Company is an import-export company that relocated earlier this year in a foreign trade zone (FTZ) in a southwestern city. The company imports $760,000 of fabric from overseas for resale to clothing companies located in the United States. Aranda purchases and receives the fabric about four months before it is sold and shipped to customers; customers are billed and pay in two months. Duty is assessed at 15 percent of cost, and Aranda faces a 6 percent carrying cost. Required: 1. What is the amount of duty paid by Aranda last year (before locating in the FTZ) and for this year after relocating to the FTZ? 2. What is the amount of carrying cost associated with the duty paid by Aranda last year and for this year after relocating to the FTZ? 3. What is the total duty-related cost for Aranda last year and for this year after relocating to the FTZ? 4. What is the total savings on duty and carrying cost attributable to locating in an FTZ? 5. What if some of the fabric turned out to be…
Slater & Sons Corp manufactures electronic components for use in many consumer products. Their raw materials are purchased literally from all over the world. Depending on the country involved, purchase terms vary widely. Some suppliers, for example, require full prepayment, while others are content to receive payment within six months of receipt of the goods. Because of this situation, Slater never closes its books until at least ten days after month end. In this way, it can sort out ownership of goods in transit, and document which goods were received by month end, and which were not. Drew Bolton, a new accountant, was asked to record about $50,000 in inventory as having been received before month end. He argued that the shipping documents clearly showed that the goods were actually received on the 8th of the current month. His boss, busy with month-end reports, curtly tells Drew to check the shipping terms. He did so, and found the notation "FOB (free on board) shipper's dock" on…
Niosoki Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk writes the date on the shipping document. The last shipment made in the fiscal year ended August 31, 2016, was recorded on document 2167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late August and early September, shipping documents are billed on sales invoices as follows: Requirement b. Which sales invoices, if any, are recorded in the wrong accounting period? Prepare an adjusting entry to correct the financial statement for the year ended August 31, Assume that the company uses a periodic inventory system (inventory and cost of sales do not need to be adjusted). Begin by completing the table below to assess which sales invoices, if any, are recorded in the wrong accounting period. Begin by assessing the…
Niosoki Auto Parts sells new parts for foreign automobiles to auto dealers. Company policy requires that a prenumbered shipping document be issued for each sale. At the time of pickup or shipment, the shipping clerk writes the date on the shipping document. The last shipment made in the fiscal year ended August 31, 2016, was recorded on document 2167. Shipments are billed in the order that the billing clerk receives the shipping documents. For late August and early September, shipping documents are billed on sales invoices as follows: The August and September sales journals have the following information included: requirements3. Question content area bottom Part 1 Requirement a. What are the accounting requirements for a correct sales cutoff? A.A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. B.A shipment should be recorded as a sale when the merchandise is shipped. C.A shipment should be recorded as a sale when the…
On October 05, 20x4, PPG Trading Co. consigned 30 computer units, costing P8000 each to Pampanga Inc. the units were to be sold on either cash or credit basis on commission of 15% of net sales. The consignor paid freight of P1800 on the shipment. On November 11, the consignee received the goods. Sales were made as follows. October 15: 10 units for cash at 13,000 each October 28: 12 units on account at 14,000 each On October 31, 20x4, collections on accounts amounted to 95,000 and an allowance of 2000 was given to charge customer for a defective unit. On November 15, 20x4 , a receivable balance of 7000 was determined to be uncollectible. On december 21, 20x4, the consignee made the proper remittance. The amount due from BB Inc. is: The consignment profit is: The cost of inventory on consignment is:
You work for Resolute Forest Products in Montreal, QC in the sales department. You are exporting paper rolls to Industria Cartaria Pieretti, based in Lucca, Italy. They have ordered a full container of paper rolls for their business in Italy. The routing instructions are the following: Besner Transport Ltée picks up the container at Resolute Forest Products plant in Alma, QC and delivers it to Termont container terminal in Montreal. MSC moves the container to Genova in Italy, on board of the vessel MSC Dorina, voyage #CK234R Gruppo Torinese Trasporti, a truck carrier, picks up the container in Genova and delivers it to Industria Cartaria Pieretti’s warehouse in Lucca, Italy. The purchasing agent from Industria Cartaria Pieretti asked you to provide quotes under various conditions. For each scenario below, provide the correct Incoterms 2020 that will be used. Industria Cartaria Pieretti makes all the transport arrangements and assumes risks for the goods once they have been loaded…
Agentel Corporation is a U.S.-based importing-exporting company. The company entered into the following transactions during the month of November. Nov. 6 Purchased merchandise from AGT, a Swiss firm, for 540,000 francs. 5 Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $200,000. 18 Sold merchandise to TNT, Ltd., a British firm, for 140,000 pounds. 20 Purchased merchandise from SDS, Ltd., a British firm, for $170,000. All the transactions were unsettled at December 31, Agentel’s fiscal year-end. Spot rates are as follows: Currency Date Franc Real Pound November 6 $0.490 $0.412 $1.520 November 15 0.487 0.409 1.509 November 18 0.476 0.414 1.506 November 20 0.468 0.405 1.498 December 31 0.460 0.398 1.482 (a) Your answer is correct. Compute the amount that Agentel would report for each unsettled receivable…
Agentel Corporation is a U.S.-based importing-exporting company. The company entered into the following transactions during the month of November. Nov. 6 Purchased merchandise from AGT, a Swiss firm, for 540,000 francs. 5 Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $200,000. 18 Sold merchandise to TNT, Ltd., a British firm, for 140,000 pounds. 20 Purchased merchandise from SDS, Ltd., a British firm, for $170,000. All the transactions were unsettled at December 31, Agentel’s fiscal year-end. Spot rates are as follows: Currency Date Franc Real Pound November 6 $0.490 $0.412 $1.520 November 15 0.487 0.409 1.509 November 18 0.476 0.414 1.506 November 20 0.468 0.405 1.498 December 31 0.460 0.398 1.482 (a) Compute the amount that Agentel would report for each unsettled receivable and payable in its balance sheet prepared…