Freight Paid by Seller Returns and Allowances (Invoice Amount) Merchandise (Invoice Amount) Freight Terms $24,000 $300 FOB destination, 1/10, n/30 $2,000 31,500 250 FOB shipping point, 2/10, n/30 2,500

Q: With the accrual basis of accounting, revenue from a credit sale is recognized Multiple Choice…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: Demonstrate revenue recognition for long-term contracts, both at a point intime when the contract is…

A: Long term contracts usually qualify for revenue recognition over time. We recognise revenue over…

Q: Which of the following best describes the current revenue recognition principle? Recognize revenue…

A: Revenue means the amount earned by selling the goods or services. Revenue is recognized in books of…

Q: In accountinf for sales discounts, most companies use the a. Allowance method b. Gross price…

A: The most commonly used method is the gross price method.in these sales, the discount is deducted…

Q: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: Explain a bill-and-hold sale. When is revenue recognizedin these situations?

A: When the buyer is not ready to take the delivery but accepts the title and the billing, then it is…

Q: Merchandise inventory is classified on the balance sheet as a a. current liability b. current…

A: Assets can be classified as current asset and long-term assets. Liabilities can be classified as…

Q: Which of the following journal entries is appropiate when a credit sales is made under a perpetual…

A: Under the perpetual inventory method, we need to record sales and also the cost of goods sold.

Q: If the sale includes the seller paying the freight costs and assuming the responsibility for…

A: FOB shipping point sale: When the goods are shipped to the buyer, the title is transferred to the…

Q: How would you find the invoice amount of merchandise that was returned in

A: When the merchandise is returned, The invoice amount of return will be credited to the customer's…

Q: What is the proper accounting for volume discounts onsales of products?

A: Volume discounts: It is an incentive to encourage for an increase in business. The seller issue…

Q: which two accounts are used to recognize shipping charges for a buyer assuming the buyer purchases…

A: Shipping cost depends upon the terms of the contract. Generally, there are two types of conditions.…

Q: Which of the following best represents the matching principle criteria?A. Expenses are reported in…

A: Accounting principles are those rules and guidelines which helps the accountants all over the world…

Q: punts receivable ipment umulated deprec tes payable

A: particulars amount particulars amount To rent expenses $45000 By service fee earned $177500 To…

Q: for the following intercompany transaction state the principle to be used in accounting for…

A: A consolidated income statement is defined as a statement that shows the expenses, income, and…

Q: Which of the following is indicative of discounts received from a supplier on account of volume of…

A: The company give many types of discount to increase the sales that depend on many factors. These are…

Q: The trade discount on purchases is recorded A. O When it is received B.When the inventory is…

A: The trade discount is the discount allowed at the time of products are sold. The trade discount…