Question: 5-3, 6-4 M, Inc. E6-9 Items Included in Inventory PCM, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics. In its

5-3, 6-4 M, Inc. E6-9 Items Included in Inventory PCM, Inc., is

5-3, 6-4 M, Inc. E6-9 Items Included in Inventory PCM, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics. In its 2018 annual report, the company reported, "we changed the terms of sale in the fourth quar- ter of 2017 such that all of our businesses have terms where title and risk of loss transfer upon delivery to the customer." Required: 1. Indicate whether PCM's sales terms are FOB shipping point or FOB destination. 2. Assume PCM sold inventory on account to eCOST.com on December 28 that was to be delivered January 3. The inventory cost PCM $25,000 and the selling price was $30,000. What amounts, if any, related to this transaction would be reported on PCM's balance sheet and income statement in December? In January? 3. Assume PCM purchased electronics on December 29 that were shipped that day and received on January 2. For these goods to be included in PCM's inventory on December 31, would the terms have been FOB destination or FOB shipping point?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Prepare Foreign Currency Trial Balance and Translate into USD Given data Kangaroo Limited Equity Account Balances December 3 1 , 2 0 2 3 AUD USD Common stock 3 0 , 0 0 0 , 0 0 0 2 1 , 3 0 0 , 0 0 0...

Question 1 Oscar Lid made an accounting profit before tax of $40,000 for the Not yet year ended 30 June 2021. answered Included in the accounting profit were the following items of Marked out of...

5 ACE, Incorporated, is a direct marketer computer hardware, software. peripherals, and electronics. In its 2018 annual report, the company reported, we changed the terms of sale in the fourth...

Homework Sayed Help Save & Exit Sub Check my work E6-9 Items Included in Inventory (LO 6-3, LO 6-4] PCM, Inc. is a direct marketer of computer hardware, software, peripherals, and electronics. In a...

E6-9 (Algo) Items Included in Inventory [LO 6-3, LO 6-4] ACE, Incorporated, is a direct marketer of computer hardware, software, peripherals, and electronics. In its 2018 annual report, the company...

Apple Inc: Performance in a Zero-Sum World Economy ON NOVEMBER1, 2010, JOHN TARPEY, SENIOR FINANCIAL ANALYST at a securities firm, was sitting at his conference table to begin the task of fully...

CASE7 Apple Inc.: Performance in a Zero- Sum World Economy Moustafa H. Abdelsamad, Hitesh ( John) Adhia, David B. Croll, Bernard A. Morin, Lawrence C. Pettit Jr., Kathryn E. Wheelen, Richard D....

What type of reinforcing fibers can be incorporated in the spray molding process? Injection molding?

A solid square rod is cantilevered at one end. The rod is 0.6 m long and supports a completely reversing transverse load at the other end of 2kN. The material is AISI 1080 hot-rolled steel. If the...

Show the steps i n full Show all images Show all images Show all images done loading

Assume you wish to evaluate the risk and return behaviors associated with various combinations of assets V and W under 3 assumed degrees of correlation: perfect positive, uncorrelated, and perfect...

This problem continues the Daniels Consulting situation from Problem P10-23 of Chapter 10. Daniels Consulting believes the company will need to borrow $300,000 in order to expand operations. Daniels...

You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data. You have been told that you can create two portfolios-one consisting of assets A...

You have been given the following return data on three assets-F, G, and H-over the period 2018-2021. Using these assets, you have isolated three investment alternatives: a. Calculate the portfolio...

The following transactions of Oscar Landing occurred during 2016: Aug. 30 Landing is party to a patent infringement lawsuit of $220,000. Landing's attorney is certain it is remote that Landing will...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

According to the Journal of Psychology and Aging (May 1992), older workers (i.e., workers 45 years old or older) have a mean job satisfaction rating of 4.3 on a 5-point scale. (Higher scores indicate...

A random sample of 100 observations from a population with stardard deviation 60 yielded a sample mean of 110. a. Test the null hypothesis that p = 100 against the alternative hypothesis that p > 100...

A group of physicians subjected the polygraph (or lie detector) to the same careful testing given to medical diagnostic tests. They found that if 1,000 people were subjected to the polygraph and 500...