Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A private hospital purchased medicines from a pharmaceutial conpany at a cost of $5000.The pharmaceutial conpany subsequently tells the hospital it is cancelling the invoice
A private hospital purchased medicines from a pharmaceutial conpany at a cost of $5000.The pharmaceutial conpany subsequently tells the hospital it is cancelling the invoice and donating the medicines to the hospital.How should the hospital record this donation of medicines?
A.A credit to operating expenses of 5000
B.A credit to other revenue or gains of 5000
C.A memorandum entry only
D.A credit to nonoperating gains and losses of 5000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started