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.
Q. What is sales allowance? A sales allowance is a inference from the original invoiced sales price granted when the customer keeps the merchandise but is dissatisfied for any
Accounting supposes that the business as an accounting entity will continue to operate for a long time in the future, unless there is superior evidence to the contrary. The enterpr
What are the implications of applying accounting concepts wrongly?
Schedule of Accounts Payable Lists the balances of accounts payable ledger, and Accounts Payable controlling account demonstrates the total amount owed to ALL creditors. Th
the Dwyer corporation incurred costs of 114000 in purchasing a process which it eventually had patented. The patent was issued on July 20x1. To secure the patent, an additional 6
assigment help
Q. What is journal? In explaining the rules of credit and debit we recorded transactions directly in the accounts. Every ledger (general ledger) account shows only the increase
I am expecting 50 growth because of the market size and consumers patronage, also because of latest product and service been introduced, also due to the competent working force wit
uses of accounting as a software enginner
Sucked into a wormhole while spending time in outer space, you land in a perfect world where accountants are worshipped and paid extravagantly. As an accountant, you're immediately
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd