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.
How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.
Brown sole trader Brown has been in business for some years and has kept her drawings slightly below the level of profits each year. You are her accountant, and she has passed
what accounts go into a balance sheet
Is the interest on a note receivables recorded if paid prior to the due date? A. Debit to interest expense B. debit to interest payable C. Credit to interest receivable D. Credit
most consrvatism way of lower cost method
You won a lottery which pays $10,000 per year for 10 years (at the end of each year). Assuming a discount rate of 8% calculate the present value of your expected winnings
Q. What do you mean by Management consulting ? Management consulting or advisory services before Sarbanes-Oxley management advisory services were the fastest growing service ar
how to account for the preference shares held by the investor
Q. Explain about Equity or net asset? An equity or net asset is the residual interest in the assets of an entity that remains subsequent to deducting its liabilities and in the
Q. Show Debit and Credit column? - Debit column. In the debit column the sum of the debit is on the same line as the title of the account debited. - Credit column. In the cr
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