Question
Classifying Goods and Costs as Inventory or Not For each of the following items, indicate whether it would be reported as inventory in the financial
Classifying Goods and Costs as Inventory or Not
For each of the following items, indicate whether it would be reported as inventory in the financial statements of the seller.
| a. Freight-in charges for the receipt of merchandise inventory purchased f.o.b. shipping point. | AnswerCurrent asset: inventoryN/A |
| b. Freight-out charges for delivery of merchandise to customer purchased f.o.b. destination. | AnswerCurrent asset: inventoryN/A |
| c. Costs incurred to recall merchandise inventory due to safety issues. | AnswerCurrent asset: inventoryN/A |
| d. State sales taxes paid on merchandise inventory purchased. | AnswerCurrent asset: inventoryN/A |
| e. Insurance premiums paid on merchandise inventory held in storage. | AnswerCurrent asset: inventoryN/A |
| f. Costs to assemble purchased merchandise inventory. | AnswerCurrent asset: inventoryN/A |
| g. Expedited air shipment charge for merchandise inventory purchased due to unexpected inventory shortage. | AnswerCurrent asset: inventoryN/A |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
