Financial Accounting[4 marks]What determines the proper account classification of freight chargeson new equipment purchases?a) Company's shipping department policyb) Whether freight is prepaid or collectc) Nature of the equipment purchasedd) Capitalize as part of equipment cost

a) Company's shipping department policyThis is incorrect.There is no internal shipping policy of the…

Answered: Financial Accounting [4 marks] What…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 18Q: Which statement and where on the statement is freight-out recorded? Why is it recorded there?

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Similar questions

Who bears the freight when the terms of sale are (a) FOB shipping point, (b) FOB destination?
Which statement and where on the statement is freight-out recorded? Why is it recorded there?
7.Under the perpetual system, cash freight costs incurred by the buyer for the transporting of goods is recorded in which account? a. Freight Expense b. Freight-Out c. Freight-In d. Inventory
Which of the following accounts is an example of a contra-asset?A) Cost of Goods Sold B)Sales Discounts C) Purchases D) Deferred Revenue E) LIFO Reserve
Lancer, Inc. (a U.S.-based company). establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency: Sales 200,000 100,000 60,000 12,000 K Inventory (bought on 3/1/20) Equipment (bought on 1/1/19) Rent expense Dividends (declared on 10/1/20) Notes receivable (to be collected in 2023) Accumulated depreciation-equipment Salary payable Depreciation expense 22,000 36,000 18,000 5,000 6,000 The following U.S.S per kuna exchange rates are applicable: January 1, 2019 Average for 2019 January 1, 2020 March 1, 2020 s0.19 0.20 0.24 0.25 0.27 October 1, 2020 December 31, 2020 Average for 2020 0.28 0.26 Lancer is preparing account balances to produce consolidated financial statements. a. Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements? b. Assuming that the U.S. dollar is the…
True or false 1. Net sales is equal to sales revenue plus sales returns and minus sales discounts 2. FOB shipping point means title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freight
Which amongst the following would not form part of cost of equipment? a. Freight charges b. Equipment license c. Cost of installation of the equipment d. Sales tax paid
Given the following information for C & J, Inc. identify where the items will be classified (asset or expense, or not reported) and on which financial statement the items will reported (income statement, balance sheet, or N/A). Cost Item Research and Development Prepaid Expenses Cost of Goods Sold Selling, General and Administrative Inventory Opportunity Cost Classification Asset Expense Not Reported Financial Statement
ANSWER
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.
Freight costs paid by a seller on merchandise sold to customers will cause an increase to a contra-revenue account of the seller. to the cost of goods sold of the seller. in operating expenses for the seller. in the selling expense of the buyer.
Goods or products a company owns and expects to sell to its customers A) Sales Merchandise Inventory C. Cost of goods sold Purchases

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Financial Accounting [4 marks] What determines the proper account classification of freight charges on new equipment purchases? a) Company's shipping department policy b) Whether freight is prepaid or collect c) Nature of the equipment purchased d) Capitalize as part of equipment cost