On August 20, 2017, Lockman Limited incurs the following costs related to inventory, all of which were paid in cash: Invoice (inventory) cost Sales tax on inventory purchased Cost to market inventory to customers Inventory delivery cost Cost to insure inventory during shipment/delivery Inventory packaging and inspection costs Cost to clean inventory sitting on retail shelves for too long TOTAL 125,000 5,000 800 3,000 200 800 500 135,300 What journal entry should Lockman Limited record associated with these costs?
On August 20, 2017, Lockman Limited incurs the following costs related to inventory, all of which were paid in cash: Invoice (inventory) cost Sales tax on inventory purchased Cost to market inventory to customers Inventory delivery cost Cost to insure inventory during shipment/delivery Inventory packaging and inspection costs Cost to clean inventory sitting on retail shelves for too long TOTAL 125,000 5,000 800 3,000 200 800 500 135,300 What journal entry should Lockman Limited record associated with these costs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:On August 20, 2017, Lockman Limited incurs the following costs related to inventory, all of which were paid in cash:
Invoice (inventory) cost
Sales tax on inventory purchased
Cost to market inventory to customers
Inventory delivery cost
Cost to insure inventory during shipment/delivery
Inventory packaging and inspection costs
Cost to clean inventory sitting on retail shelves for too long
TOTAL
125,000
5,000
Account
800
3,000
200
800
500
135,300
What journal entry should Lockman Limited record associated with these costs?
Debit
105.000.00
Credit
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