Question: If a Chicago based company ships goods on September 30 to
If a Chicago-based company ships goods on September 30 to a customer in Hawaii with sales terms FOB destination, does the Chicago-based company include the inventory or the sale in its September financial statements?
Answer to relevant QuestionsDescribe 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. Nicole’s Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aroma-therapy items. Nicole uses a ...Luxottica Group, the Italian company that sells Ray Ban and Oakley sunglasses, reported net sales of € 7.1 billion in 2012 and € 6.2 billion in 2011. Gross profit increased from € 4.1 billion in 2011 to € 4.7 billion ...Inventory at the beginning of the year cost $ 13,400. During the year, the company purchased (on account) inventory costing $ 84,000. Inventory that had cost $ 80,000 was sold on account for $ 95,000. At the end of the year, ...Using the information in E6-14, prepare journal entries to record the transactions, assuming Ever-green Company uses a perpetual inventory system. Info E6-14 15 Sold merchandise to Claudio’s Chair Company at a selling ...
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