College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 12, Problem 5A
To determine
Explain the impact of freight charges being journalized and posted to Freight-In account, and explain its effect on Cost of Goods Sold.
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• prepare a cost of goods manufactured statement
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• also, is there a manufacturing overhead?
A temporary account used to record the cost of goods bought for resale during a periodis called
Which of the following is reported as part of the operating expenses?
Cost of sales
Freight-In
Sales allowances
Freight-Out
Chapter 12 Solutions
College Accounting (Book Only): A Career Approach
Ch. 12 - What is the term used for the profit on a sale...Ch. 12 - Which of the following is not an example of a...Ch. 12 - Prob. 3QYCh. 12 - What is the third entry of the closing procedure...Ch. 12 - What general journal entry is used to undo a...Ch. 12 - Prob. 1DQCh. 12 - What is the difference between the cost of goods...Ch. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Explain the calculation of net sales and net...Ch. 12 - Prob. 7DQCh. 12 - What are the rules for recognizing whether an...Ch. 12 - Prob. 9DQCh. 12 - Calculate the missing items in the following:Ch. 12 - Using the following information, prepare the Cost...Ch. 12 - Prob. 3ECh. 12 - The Income Statement columns of the August 31...Ch. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - From the following T accounts, journalize the...Ch. 12 - From the following information, journalize the...Ch. 12 - A partial work sheet for The Fan Shop is presented...Ch. 12 - Prob. 2PACh. 12 - The following partial work sheet covers the...Ch. 12 - The following accounts appear in the ledger of...Ch. 12 - A partial work sheet for McKnight Music Store is...Ch. 12 - Here is the partial work sheet for Meyer Mountain...Ch. 12 - The following partial work sheet covers the...Ch. 12 - The following accounts appear in the ledger of...Ch. 12 - Costco is the largest chain of membership...Ch. 12 - A music store sells new instruments. The store...Ch. 12 - You are an owner/bookkeeper in a country whose...Ch. 12 - Prob. 4ACh. 12 - Prob. 5ACh. 12 - Prob. 1CP
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- Which statement and where on the statement is freight-out recorded? Why is it recorded there?arrow_forwardWhat account is debited when recording the payment of freight in when using the periodic inventory system?arrow_forwardWhat are the journal entries, posting to t-accounts and statement of cost of goods sold fo this prblm?arrow_forward
- The buyer should be responsible for the freight (legally) but the seller paid for it A. FOB shipping point, freight prepaid B. FOB shipping point, freight collect C. FOB destination, freight prepaid D. FOB destination, freight collectarrow_forwardWhen the buyer pays the freight costs, the entry to record the payment under a perpetual inventory system would include a debit to _______. Question content area bottom Part 1 A. Freight In B. Inventory C. Purchases Discounts D. Delivery Expensearrow_forwardThe shipments from branch account is added to the branch's purchases account in determining branch's cost of goods sold. True or False. Explanationarrow_forward
- Explain the difference between freight in and freight out. Who pays for each? Who owns the goods while they are in transit? What type of account is freight in? What type of account is freight out?arrow_forwardDistinguish between FOB Shipping Point and FOB Destination. Identify the freight terms that will result in a debit to Inventory and which one will result in a debit to Freight expenses by the seller.arrow_forwardXYZ Company hires third party to deliver goods to their customer on FOB destination, freight prepaid. On the books of XYZ Company, the entry for the freight under perpetual inventory system is debit Finished Goods credit Accounts Receivable. debit Freight In, credit Accounts Receivable. debit Freight Out, credit Cash. debit Raw Materials, credit Accounts payable.arrow_forward
- Which of the following needs an adjustment to the accounts receivable account of AB Company? a. a freight cost paid by the buyer for goods shipped FOB shipping point b. freight cost prepaid by the seller for good shipped FOB destination c. freight cost prepaid by the buyer for goods shipped FOB shipping point d. freight cost prepaid by the seller for goods shipped FOB shipping pointarrow_forwardThe ownership of goods is transferred upon receipt of the goods by the buyer and the seller is the owner of the goods while in transit A. FOB Destination Point B. FOB Shipping Point C. Freight prepaid D. Freight collectarrow_forwardWhich of the following should be included in inventory on the balance sheet? Goods out on approval to customers- Goods in transit purchased FOB destination Raw materials Goods received on consignment- Goods sold where large returns are predictablearrow_forward
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