Question
1. Given the following account information, calculate net income: Sales 500,000 Beginning Inventory 200,000 Ending Inventory 35,000 Purchases of Inventory 25,000 Selling Expenses 1,000 Administrative
1. Given the following account information, calculate net income:
| Sales | 500,000 | |
| Beginning Inventory | 200,000 | |
| Ending Inventory | 35,000 | |
| Purchases of Inventory | 25,000 | |
| Selling Expenses | 1,000 | |
| Administrative Expenses | 6,000 | |
| Rent Income | 30,000 | |
| Calculate Net Income |
|
273,000
333,000
233,000
263,000
2. If the shipping terms are "FOB Destination", then
the buyer is responsible for shipping cost
The seller is responsible for shipping cost
3. If the shipping terms are "FOB shipping point", then
the buyer is responsible for shipping costs
The seller is responsible for shipping costs.
4. When the seller is responsible for paying freight, They will debit _______________ and credit cash
Delivery Expense
Merchandise Inventory
5. When the buyer is responsible for paying freight, They will debit _______________ and credit cash
Delivery Expesne
Merchandise Inventory
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Financial Accounting International Financial Reporting Standards Global Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
11th Edition
9781292211145
