Question
Expense Matching Identify the proper point to recognize expense for each of the following transactions. a. Katharina Inc. purchases on credit six custom sofas for
Expense Matching Identify the proper point to recognize expense for each of the following transactions.
a. Katharina Inc. purchases on credit six custom sofas for $800 each in June. Two of the sofas are sold for $1,200 each in June. One of the sofas is sold for $1,000 in July and the remaining three sofas are sold for $1,500 each in August. All sales are for cash. Katharina pays its supplier in July.
b. Kuyu Co. purchases $500 of supplies in January. Half the supplies are used in January with the remaining half used in February.
c. Jane Co. purchases $1,000 of inventory for cash in September. The entire inventory is sold in November.
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