Matching
Match the items below with the appropriate statements.
Premises:
ABC,Inc.paid $2,500 to a supplier for merchandise it had purchased on credit two months earlier.
ABC,Inc.purchases $2,000 of merchandise on account.
ABC,Inc.returned $200 of merchandise.
ABC,Inc.pays $60 of import tariffs associated with a purchase of merchandise from an overseas supplier.
ABC,Inc.purchases merchandise and pays $400 of shipping insurance.
Responses:
X = The expenditure should NOT be included in the inventory account.
I = The expenditure should be included in the inventory account.
Correct Answer:
Premises:
Responses:
ABC,Inc.paid $2,500 to a supplier for merchandise it had purchased on credit two months earlier.
ABC,Inc.purchases $2,000 of merchandise on account.
ABC,Inc.returned $200 of merchandise.
ABC,Inc.pays $60 of import tariffs associated with a purchase of merchandise from an overseas supplier.
ABC,Inc.purchases merchandise and pays $400 of shipping insurance.
Premises:
ABC,Inc.paid $2,500 to a supplier for merchandise it had purchased on credit two months earlier.
ABC,Inc.purchases $2,000 of merchandise on account.
ABC,Inc.returned $200 of merchandise.
ABC,Inc.pays $60 of import tariffs associated with a purchase of merchandise from an overseas supplier.
ABC,Inc.purchases merchandise and pays $400 of shipping insurance.
Responses:
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