You are asked to travel to Vienna to observe and verify the inventory of the Vienna branch
Question:
Later in the day, you ask the bookkeeper for the invoice on the carload and the related freight bill. The invoice lists the various items, prices, and extensions of the goods in the car. You note that the carload was shipped December 24 from Berlin, f.o.b. Berlin, and that the total invoice price of the goods in the car was €35,300. The freight bill called for a payment of €1,500. Terms were net 30 days. The bookkeeper affirms the fact that this invoice is to be held for recording in January.
Instructions
a. Does your client have a liability that should be recorded at December 31? Discuss.
b. Prepare a journal entry(ies), if required, to reflect any accounting adjustment required. Assume a perpetual inventory system is used by your client.
c. For what possible reason(s) might your client wish to postpone recording the transaction?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Question Posted: