.In consignment sales, what is the proper treatment of the consignment-related transportation cost paid by the consignor (1) upon shipment and (2) upon return of the consigned goods to the consignor? a. (1) inventory ; (2) inventory b. (1) expense ; (2) inventory c. (1) expense ; (2) expense d. (1) inventory ; (2) expense

.In consignment sales, what is the proper treatment of the consignment-related transportation cost paid by the consignor (1) upon shipment and (2) upon return of the consigned goods to the consignor? a. (1) inventory ; (2) inventory b. (1) expense ; (2) inventory c. (1) expense ; (2) expense d. (1) inventory ; (2) expense

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 9DQ

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Similar questions

Under the retail inventory method, freight-in would be included in the calculation of the goods available for sale for which of the following?
In the income statement, Freight-In is (a) added to purchases. (b) subtracted from purchases. (c) added to sales. (d) subtracted from cost of goods.
Where should goods in transit that where recently purchased f.o.b. destination be included on the balance sheet? A) Accounts payable. B) Inventory C) Equipment D) Not the balance sheet
Cost of goods available for sale is calculated by adding: A beginning inventory to net purchases and deducting ending inventory. B beginning inventory to the net purchases. © purchases to ending inventory. net purchases and freight-in.
Costs to be capitalized in the inventory account include which of the following? a. Cost of the inventory b. Transportation costs c. Taxes d. Installation e. All of the above
When goods are sold on a bill-and-hold basis, what conditions must be met to recognize revenue upon receipt of the order?
Which of the following statements is correct? Group of answer choices A)Revenue is recognized at the time of shipment when goods are shipped FOB destination. B)Sales returns and allowances are reported as operating expenses on an income statement. C)Revenue is recorded when title and risks of ownership transfer to the buyer. D)Sales discounts are reported as operating expenses on an income statement.
If the net realizable of an entity's inventories is less than its cost, the entry to adjust the balance of the inventory assuming the entity uses the allowance method will involve a A. Debit to inventory B. Debit to loss on inventory write-down C. Credit to inventory. D. Credit to loss on inventory write-down
What document signals that a company should record thepurchase of goods on account?a. Purchase requisitionb. Purchase orderc. Receiving reportd. Supplier invoice
The authority to accept incoming goods in receiving should be based on a(n)(1) vendor’s invoice. (3) bill of lading.(2) purchase requisition. (4) approved purchase order.
Which accounting concept requires that any goods taken from inventory by the owner aretreated as drawings?A. AccrualsB. Business entityC. PrudenceD. Going concern
Which of the following statements about merchandisingactivities is true? (More than one answer may be correct.)a. As inventory is purchased, the Inventory Expenseaccount is debited and Cash (or Accounts Payable) iscredited.b. Inventory is recorded as an asset when it is firstpurchased. c. As inventory is sold, its cost is transferred from the bal-ance sheet to the income statement. d. As inventory is sold, its cost is transferred from theincome statement to the balance sheet.