What is the difference between FOB shipping point and FOB destination? How do these terms relate to the revenue principle?
Answer to relevant QuestionsDescribe in words the journal entries that are made in a perpetual inventory system when inventory is sold on credit. Nord Store’s perpetual accounting system indicated ending inventory of $ 20,000, cost of goods sold of $ 100,000, and net sales of $ 150,000. A year-end inventory count determined that goods costing $ 15,000 were actually ...Explain whether the following items should be included in the inventory of The Knot, Inc., a company that arranges and supplies wedding services for couples and other wedding consultants. a. Goods are being held by The Knot ...Using the information in E6-9, prepare journal entries to record the transactions, assuming Ace uses a perpetual inventory system. Info E6-9 During the month of June, Ace Incorporated purchased goods from two suppliers. The ...Cycle Wholesaling sells merchandise on credit terms of 2/10, n/30. A sale for $ 800 (cost of goods sold of $ 500) was made to Sarah’s Cycles on February 1. Assume Cycle Wholesaling uses a perpetual inventory system. ...
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