Answer:
(C) balance sheet as a current asset
Explanation:
Finished goods inventory are considered part of the assets of a company, and due to their short life span, are recognized as current assets. Thus, they are recognized on the balance sheet as current assets.
Option A is incorrect because finished goods inventory are short-term assets and are usually disposed off within a year. Option B is incorrect as only sold finished goods make up revenue, not those held as inventory. Option D is incorrect because finished goods inventory are not period cost. However, the cost of purchasing or manufacturing them are considered as cost.
As pizza company sells three $100 gift cards at the beginning of the month, it should record a debit to <u>Cash</u> and credit to <u>Deferred Revenue</u> for $300.
<h3>What is a Cash account?</h3>
In accounting, the cash account may refer to a ledger in which all cash transactions are recorded. These cash account includes both the cash receipts journal and the cash payment journal.
<h3>What is a Deferred Revenue?</h3>
In accounting, the deferred revenue is a record of income received for a product or service that has yet to be delivered. It is also an unearned revenue that happens when a customer prepays a company for something.
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I think the answer would be b.
Hope this helps
Answer:
a. 6,628
Explanation:
Sales forecast for current year June month = 6,435 cases*(1+0.03) = 6,435 cases*1.03 = 6,628.05 cases
Total sales for June in current year = Sales forecast for June + increase in sales due to promotion = 6,628.05 cases + 500 cases = 7,128.05 cases
Answer:
Explanation:
The journal entry is shown below:
1st July Debit Prepaid insurance $13620
Credit Cash $13620
31st December Debit Insurance expenses $2270
Credit Prepaid insurance $2270
Insurance expense was calculated as:
= $13620/3 years × 6months/12months
= $4540 × 1/2
= $2270