How to enter this transaction in books of accounts?, Accounting Basics

Assignment Help:

My company has done a down payment on inventory ,then manufacturer will ship this order between 30 to 60 days after original payment and the balance is due 60 days once the order gets shipped. How to enter this transaction in books of accounts?

 


Related Discussions:- How to enter this transaction in books of accounts?

Accounting for inventory are perpetual inventory procedure, Two techniques ...

Two techniques of accounting for inventory are perpetual inventory procedure and periodic inventory procedure. Under perpetual inventory procedure the inventory account is constant

Explain about realization principle, Q. Explain about realization principle...

Q. Explain about realization principle? Realization of revenue Under the realization principle the accountant doesn't recognize (record) revenue until the seller obtains the ri

Calculate breakeven analysis, Breakeven Analysis - I really need help calcu...

Breakeven Analysis - I really need help calculating this. Our company's breakeven point occurs after the agency consecutively yields two months of positive net income. This a

Supply & demand, #quesDance fans switch away from dance music to R&B music ...

#quesDance fans switch away from dance music to R&B music AND the price of MP3 players decreases. tion..

Accounting process in operation, Accounting process in operation Micro ...

Accounting process in operation Micro Train Corporation is a small corporation that provides on-site personal computer software training using the clients' equipment. The compa

Next step till finalization, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Hi, Purchase of office supplies what is the account classification?

Purchase of office supplies what is the account classification?

Work as assignment creator, I have just created my profile here, I want to ...

I have just created my profile here, I want to work with this platform. I am an ACCA student, completed my FIA diploma. How can I get or apply for work now?

1. carmen santiago works for a number of businesses, 1. Carmen Santiago wor...

1. Carmen Santiago works for a number of businesses as a "consultant." She has helped design accounting systems, provided accounting services, and analyzed the financial stre

What is invoice, Q. What is invoice? An invoice is a document prepared ...

Q. What is invoice? An invoice is a document prepared by the seller of merchandise as well as sent to the buyer. The invoice contains the details of a sale such like the number

create other current asset account

2/19/2014 2:25:22 AM

You are required to create other current asset account and label it as prepaid inventory. This account will be consider as debit and cash will be credited as down payment. Once you receive the inventory,it would be credited in the prepaid inventory account as well as debit inventory. When you receive the remaining stock that account will  be now debited and the accounts payable account will be credited. After paying the remaining amount, the account payable account would be debited and the cash account would be credited.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd