RECOGNIZING EXPENSES Treadway Dental Services gives each of its patients a toothbrush with the name and phone
Question:
RECOGNIZING EXPENSES Treadway Dental Services gives each of its patients a toothbrush with the name and phone number of the dentist office and a logo imprinted on the brush. Treadway purchased 15,000 of the toothbrushes in October 2009 for $3,000. The toothbrushes were delivered in November and paid for in December 2009. Treadway began to give the patients the toothbrushes in February 2010. By the end of 2010, 5,000 of the toothbrushes remained in the supplies account.
Required:
. How much expense should be recorded for the 15,000 toothbrushes in 2009 and 2010 to properly match expenses with revenues?
. Describe how the 5,000 toothbrushes that remain in the supplies account will be handled in 2011.
Exercise
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen