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hram777 [196]
2 years ago
11

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for A) purchase of goods on account. B) the sale

of goods to a customer. C) transfer of materials into Work-in-Process Inventory. D) transfer of goods to the Finished Goods Storeroom.
Business
1 answer:
Firlakuza [10]2 years ago
7 0

Answer:

B) the sale of goods to a customer.

Explanation:

When goods are sold to a customer, the cost of goods sold account is debited by the same value that the finished goods inventory is credited.

For example, suppose a company sells $1,000 worth of goods to a customer, and the sales price is $1,200. The customer pays by cash the full value of the goods. The journal entry would be:

Account                                    Debit           Credit

Cash                                         $1,200

Sales Revenue                                             $1,200

Cost of Goods Sold                $1,000

Finished Goods Inventory                           $1,000

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"record revenue when goods or services are provided to customers" is the definition of which principle in accounting?
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Revenue Recognition is one of the principles of accounting which explain the conditions for recognition of a Revenue. According to this principle, a business should record the revenue when the goods or services are provided to customers. The principal further explains that the revenue should be measurable in terms of money and the collection of revenue should be done or it should be receivable.


Hence we can say that "record revenue when goods or services are provided to customers" is the definition of <u>Revenue Recognition</u> principle in accounting.



6 0
3 years ago
Although Tracith is one of the best supermarkets in the coastal town of Dawntonia, it fails to retain customers. To solve this p
adell [148]

Answer:

The answer is B.The entrepreneur role.

Explanation:

6 0
3 years ago
Concord Company sells many products. Gizmo is one of its popular items. Below is an analysis of the inventory purchases and sale
Nitella [24]

Answer:

the numbers are missing, so I looked for a similar question:

Purchases Sales Units Unit Cost Units Selling Price/Unit

3/1 Beginning inventory 100 $40

3/3 Purchase 60 $50

3/4 Sales 60 $80

3/10 Purchase 200 $55

3/16 Sales 70 $90

3/19 Sales 90 $90

3/25 Sales 60 $90

3/30 Purchase 40 $60

the requirements are:

calculate COGS and ending inventory under FIFO, LIFO and weighted average.

since this company uses the periodic inventory level we must first determine the total cost of goods available for sale:

3/1 Beginning inventory 100 $40

3/3 Purchase 60 $50

3/10 Purchase 200 $55

3/30 Purchase 40 $60

total goods available for sale = 400 units, at a total cost of $20,400

total units sold = 60 + 70 + 90 + 60 = 280 units

ending inventory  = 120 units

under FIFO:

ending inventory = (40 x $60) + (80 x $55) = $6,800

COGS = $20,400 - $6,800 = $13,600

under LIFO:

ending inventory = (100 x $40) + (20 x $50) = $5,000

COGS = $20,400 - $5,000 = $15,400

under weighted average:

ending inventory = ($20,400 / 400) x 120 = $6,120

COGS = $20,400 - $6,120 = $14,280

3 0
3 years ago
Suppose you buy a 7 percent coupon, 20-year bond today when it’s first issued. If interest rates suddenly rise to 15 percent, wh
Mariana [72]

Answer: The value of the bond will decrease

Explanation:

The Interest rate has a negative inverse relationship with the value of a bond . When the interest rate increases the value of a bond decreases and when interest rate decreases  the bond value increases. Bonds with low coupon rates tend to be more sensitive to interest rate changes this is known has coupon effect.

Bonds with long time frame (long term bonds), they also  tend to be are more sensitive to changes in the interest rate this is known has the maturity effect.  Therefore a change in the interest rate will cause a huge change in the value of a Bond with low coupon rate and long time period.

The Bond is a 20 year Bonds which qualifies it to be a long term bond and the coupon Rate is 7%, with these facts and knowing that  long term bonds are more sensitive to interest rate changes we can conclude that the sudden increase of the interest rate to 15%  will cause a huge decrease in the value of the bond

5 0
3 years ago
What is the mean, to the nearest tenth, of the numbers 22, 22, 27, 29, 30, 34, and 38?
ICE Princess25 [194]
The answer is 28.9 because you add all the numbers together and divide by 7. The answer is 28.8 which rounds to 28.9.
8 0
3 years ago
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