Kobe's manufacturing company sells wood merchandise to Luke which is a retailer who is in charge of selling these woords to the primary customers. Luke buys the goods from Kobe under a consignment contract. The revenue from sale of the goods to Luke then must be recognized by Kobe i. if the goods are already sold by Luke ii. depends on the payment terms between them iii. depends on the delivery terms of the goods v. if the goods are already delivered to Luke

Kobe's manufacturing company sells wood merchandise to Luke which is a retailer who is in charge of selling these woords to the primary customers. Luke buys the goods from Kobe under a consignment contract. The revenue from sale of the goods to Luke then must be recognized by Kobe i. if the goods are already sold by Luke ii. depends on the payment terms between them iii. depends on the delivery terms of the goods v. if the goods are already delivered to Luke

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When inventory is purchased on credit with terms FOB shipping point, what does the buyer do? Responses The buyer receives a discount if payment is made before the goods leave the seller’s place of business. The seller bears the insurance expense of goods during transit. The buyer reports the liability when the goods reach the buyer’s place of business. The buyer reports the liability when the goods leave the seller’s place of business.
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Suppose you are being interviewed for a bookkeeping job for a retailer that uses a perpetual inventory system. The employer feels that the only way to determine whether or not the person being interviewed actually understands how to record transactions, is to ask them to provide an example showing the accounts (no amounts necessary) that would be debited and credited for the following: Purchase merchandise inventory on account. Sale of goods on account Return of part of the merchandise purchased in 1. above to the supplier. Payment to supplier, taking advantage of the discount that was offered. Return of goods by customer for credit. Payment received from customer, taking advantage of discount that was offered.
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Good evening , please assist with the following . The question and format is attached .
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