Nikki Okuma Is Going Over the Transactions for May

Essay

Nikki Okuma is going over the transactions for May.She is having fun running South Seas and is eager to learn more about the accounting aspects of her business.Review the following transactions and explain to Nikki the accounting rules that apply to each situation.
1.South Seas imports items from several Pacific island countries.All of them have different currencies.
2.South Seas imported $10,000 worth of inventory in May and sold $3,000 of it in May.
3.Three customers paid $400 in advance deposits for some carvings to be ordered from Tahiti.
4.Nikki has a personal collection of Balinese puppets which is displayed in her store.