Computers For You is a retailer specializing in selling computers and related equipment.During 2011, Computers For You sells $200,000 of merchandise to Sandcastles, Inc.Computers For You incurs $24,000 of freight costs associated with these sales.Which of the following is true regarding how this $24,000 is treated on the financial statements?
A) Computers For You will report the $24,000 as part of merchandise inventory on the statement of financial position.
B) Sandcastles, Inc.will report the $24,000 as part of merchandise inventory on the statement of financial position.
C) Computers For You will report the $24,000 as part of operating expenses on the income statement.
D) Sandcastles, Inc.will report the $24,000 as an accounts receivable on the statement of financial position.
Correct Answer:
Verified
Q25: What is consigned inventory?
A) Goods that are
Q42: Feine Co. accepted delivery of merchandise which
Q46: Which of the following is a product
Q47: What is the effect of a $50,000
Q48: Which of the following is included in
Q49: Amazon.com (USA) and other e-tailers account for
Q52: Oats Company offers a trade discount to
Q53: Which of the following types of interest
Q55: Dolan Co. received merchandise on consignment. As
Q57: Which of the following costs should not
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents