Describe how transportation costs to obtain inventory (freight-in) are accounted for by a merchandising company using a perpetual inventory system. Explain the reasoning behind this accounting treatment.
Answer to relevant QuestionsWhat is the main distinction between perpetual and periodic inventory systems? Which type of system provides better internal control over inventory? Explain why. Access the Wiki Art Gallery (WAG) instructional case in Connect and read the case in sufficient depth to answer the following questions. 1. Is the revenue recognition policy used by WAG for artwork sales in accordance with ...Fortune Brands Home & Security, Inc., sells Master Lock padlocks. It reported an increase in net sales from $ 3.3 billion in 2011 to $ 3.6 billion in 2012, and an increase in gross profit from $ 1.0 billion in 2011 to $ 1.2 ...Merchandise costing $ 2,000 is sold for $ 3,000 on terms 2/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit? The following transactions were selected from among those completed by Bear’s Retail Store: Nov. 20 Sold two items of merchandise to Cheryl Jahn, who paid the $ 400 sales price in cash. The goods cost Bear’s $ 300. 25 ...
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