PC Mall, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics. In a recent
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1. Indicate whether PC Mall's sales terms are FOB shipping point or FOB destination.
2. Assume PC Mall sold inventory on account to eCOST.com on December 28, 2012, which was to be delivered January 3, 2013. The inventory cost PC Mall $25,000 and the selling price was $30,000. What amounts, if any, related to this transaction would be reported on PC Mall's balance sheet and income statement in 2012? In 2013?
3. PC Mall placed inventory on consignment with one of its customers. Would this inventory have been reported on the balance sheet of PC Mall or its customer?
4. Assume PC Mall purchased electronics on December 29, 2012, which were received on January 2, 2013. For these goods to be included in PC Mall's inventory on December 31, 2012, would the terms have been under FOB destination or FOB shipping point?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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