Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Understand how to account for transportation costs?
FOB terms are particularly important at the end of an accounting period. Goods in transit after that belong to either the seller or the buyer, and one of these parties must include these goods in its ending inventory. Goods shipped FOB destination belongs to the seller while in transit as well as the seller includes these goods in its ending inventory. Goods shipped FOB shipping point belongs to the buyer while in transit as well as the buyer records these goods as a purchase and includes them in its ending inventory. For instance assume that a seller ships goods on 2009 December 30 as well as they arrive at their destination on 2010 January 5. If terms are FOB destination the seller comprise the goods in its 2009 December 31 inventory and neither seller nor buyer records the exchange transaction until 2010 January 5. If terms are FOB shipping point the buyer comprise the goods in its 2009 December 31 inventory as well as both parties record the exchange transaction as of 2009 December 30.
Occasionally the seller prepays the freight as a convenience to the buyer even though the buyer is eventually responsible for it. The buyer simply reimburses the seller for the freight paid. For instance assume that Wood Company sold merchandise to Loud Company with terms of FOB shipping point freight prepaid. The freight indict were USD 100. The following entries are essential on the books of the buyer and the seller
Such entries are essential because Wood initially paid the freight charges when not required to do so. Therefore Loud Company must reimburse Wood for the charges. If the buyer pays shipment for the seller (e.g. FOB destination, freight collect) the buyer merely deducts the freight paid from the amount owed to the seller. The subsequent entries are necessary on the books of the buyer and the seller
Purchase discounts may be taken merely on the purchase price of goods. Thus a buyer who owes the seller for freight charges can't take a discount on the freight charges owed even if the buyer makes payment within the discount period.
what is the accounting?
The net cash provided by operating activities is affected by
Why to and by using in journal, trading a/c, p&l a/c and ledger?
Q. Learning objectives of Horizontal and vertical analysis? - An account is a storage element used to classify and summarize money measurements of business activities of a simi
how do i prepare a multilevel and single step income statement
Q. What do you mean by Supplies on hand? Supplies on hand approximately each business uses supplies in its operations. It may classify supplies merely as supplies to include al
Suppose a firm owns oil well assets. It is deciding how much oil to extract from its oil wells this year and next year. Production of oil costs $10 per barrel this year; next year,
Explain the business assets Withdrawal Withdrawal (Drawing) is removal of business assets for personal use by owner. This transaction decreases the asset taken and value of
1. If market interest rates are higher than the rate offered on the bonds being sold, they will be sold at: A. a premium. B. a discount. C. face value. D. a loss.
Q. Describe about Expense? Expense -- an expenditure that is chargeable against revenue during an accounting period.An expense leads to the reduction of an asset. All expenditu
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd