The work paper in the year of sale to eliminate unrealized intercompany profit in ending: a. Credit to Ending Inventory (Cost of Sales) b. Debit to Ending Inventory (Cost of Sales) c. Debit to Inventory – Balance Sheet d. Credit to Sales

Q: 29 - How are purchase refunds recorded to which account? A) From the purchase to the debt of the…

A: Purchase returns are always in a nature of returns made to the sellers and thus decreasing the…

Q: Activity 1: TRUE OR FALSE. Write True if the statement is correct and False if it is not.  ____…

A: The SCI is a statement of comprehensive income that shows the balance of all nominal accounts by…

Q: Ahmed Co. decides to establieh a petty cash fund with a beginning balane OA OB. Debit Cash BD 500…

A: Accounting is a medium of communication, like any language that we use. For example, two people can…

Q: The cost of goods on hand and available for sale at any given time and treated as a current asset…

A: The cost of goods available on hand is an asset.

Q: The adjusting entry to set up the ending inventory will have: (A) a credit to Sales B a debit to…

A: Ending inventory is the worth of products still available for sale and held by a corporation at the…

Q: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…

A: Purchase in transit (FOB shipping point) means that where buyer become the owner of the goods at the…

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: (True or False) Cost of sales, under the periodic system, is calculated as inventory at start (plus…

A: Periodic Inventory System - Under periodic inventory system cost of goods sold will be calculated at…

Q: Select all that apply Identify the statements below which are correct regarding a merchandiser's…

A: A multi-step income statement is a financial statement that provides a detailed breakdown of a…

Q: True or False: In calculating gross profit, sales revenue is first adjusted for sales returns,…

A: In accounting, gross profit is calculated as the difference between sales revenue and the cost of…

Q: 1-Which of the following will be classified under inventory? a. Raw Materials b. All the above c.…

A: Gross profit margin = [(REVENUE - COGS) /REVENUE] *100

Q: Match the accounting term with its correct definition. Question 1 options: 1. contains deductions…

A: Introduction:Periodic Inventory:The periodic inventory system is based on periodic reviews and…

Q: 1. Journalize the adjustment for inventory shrinkage. 2. Journalize the adjustment for estimated…

A: Given: Merchandise inventory = $ 5,200 Inventory on June 30, 2018 = $ 4,900 Amount of Sold…

Q: For each of the following formulas, select the correct name of the formula: Sales Revenue - Sales…

A: The given formulas are matched below:

Q: Identify if the transaction is Debit or Credit 1. Increase in Materials Inventory 2. Decrease in…

A: The assets and expenses have debit balance and liabilities and revenue have credit balance. The…

Q: A multi-step income statement in a periodic inventory system differs from that in a perpetual…

A: Income statement is the financial statements which is used to see the performance of the entity or…

Q: Under periodic inventory system, when there is purchase return then: Inventory will be debited…

A: Answer  A periodic inventory system only updates the closing inventory balance in the general ledger…

Q: FAST PLZ - Which of the following element of cost is important in calculating the cost of closing…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Inventory turnover is computed by dividing cost of goods sold by O 2x (ending inventory + beginning…

A:

Q: When there is a net profit in a merchandising entity, which of the following accounts may not be…

A: The closing entries are prepared to close the temporary accounts of the business. The temporary…

Q: multiple choice: Which of the following statements is TRUE? A. The inventory turnover ratio shows…

A: Ratio Analysis provides insights into the performance of the company based on various parameters.

Q: How do retail companies correctly match expenses with revenue for the period to get an accurate net…

A: The matching principle in accounting is a fundamental principle that requires companies to report an…

Q: Freight costs paid by a seller on merchandise sold to customers will cause an increase to a…

A: In operating expenses for the seller. Explanation:In operating expenses for the seller.When a seller…

Q: Using a perpetual inventory system, the entry to record the return of inventory previously purchased…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Journalize the following transactions for the seller, Williams Company, using the gross method to…

A: Journal entries are a part of the accounting system which identifies, evaluates, and records the…

Q: 6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: (b) How much did the client capitalize into inventory on a per-unit basis? Inventory cost per unit $

A: Answer:- Standard costing method:- The cost of products sold is used to correct the differences in…

Q: Under periodic accounting system, when merchandize is sold, entry is posted in which account? *…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Gross Margin of a Merchandise Business will be calculated by using which of the following formula?…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Cost of goods sold equals to a) ® Cost of goods available for sale - ending inventory. b) © Sales +…

A: COST OF GOODS SOLD REFERS TO THE DIRECT COSTS OF PRODUCING THE GOODS SOLD BY A COMPANY .

Q: The balance of the Cost of Goods Sold account: O a. increases when there is a sale. O b. increases…

A: When there is a sale then unit of goods would be sold more and which will increase the cost of…

Q: Which inventory cost appears as a Cost of goods sold in an Income statement under FIFO method?

A: “First-In, First-Out” is a method used for cost flow assumption purposes in the cost of goods sold…

Q: what is the purporse of opening the cost of sales A/C yet a double entry had been made upon their…

A: Cost of goods sold is reported in the income statement of the compant. It is required to be deducted…

Q: ic inventory system wants to remove beginning estimated returns inventory, which of the following…

A: The right answer is option a.Estimated Returns Inventory

Q: When the net price method is used to record credit sales, the sales discount not taken account is…

A: Under the net price method, all the credit sales are recorded at a net amount that is the amount…

Q: Weighted Average Cost (Periodic) Units Cost Goods Available for Sale Cost of Goods Sold Ending…

A: Inventory Valuation: It is an asset held for sale in the ordinary course of business. It is used in…

Q: Which of the following combinations of equations calculates the Cost of Goods Sold for a period in…

A: Cost of goods sold is one of important component of cost sheet. It shows actual cost of goods that…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.