On December 15, 2019 , Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint. Costs incurred by 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, 2019 . What is the amount that should be charged to inventory and expense respectively? A. 3,000 and 3,700 B. 5,000 and 1,700 C. 5,500 and 1,200 D. 6,700 and 0
On December 15, 2019 , Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint. Costs incurred by 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, 2019 . What is the amount that should be charged to inventory and expense respectively? A. 3,000 and 3,700 B. 5,000 and 1,700 C. 5,500 and 1,200 D. 6,700 and 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4.) On December 15, 2019 , Flanagan purchased goods costing $100,000. The terms were FOB shippingpoint. Costs incurred by 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, 2019 . What is the amount that should be charged to inventory and expense respectively?
A. 3,000 and 3,700
B. 5,000 and 1,700
C. 5,500 and 1,200
D. 6,700 and 0
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