On december 15, 2019 Flanagan company purchased goods costing 100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?
On december 15, 2019 Flanagan company purchased goods costing 100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows: Normal freight charges $3,000 Handling costs 2,000 Insurance on shipment 500 Abnormal freight charges for express 1,200 Shipping The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On december 15, 2019 Flanagan company purchased goods costing 100,000. The term were FOB shipping point. Costs incurred by the entity in connection with the purchase and delivery of the goods were as follows:
Normal freight charges $3,000
Handling costs 2,000
Insurance on shipment 500
Abnormal freight charges for express 1,200
Shipping
The goods were received on December 17, year 2. What is the amount that Flanagan should charge to inventory and to current period expense?
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