Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 29, Platinum shipped goods with a selling price of $80,000 and a cost of $60,000 to District q Sales Corporation FOB shipping point.

image text in transcribed

On December 29, Platinum shipped goods with a selling price of $80,000 and a cost of $60,000 to District q Sales Corporation FOB shipping point. The goods arrived on January 3. District Sales had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Platinum had authorized the shipment and said that if District wanted to ship the goods back next week, it could. Included in the count was $48,000 of goods that were parts for a machine that the company no longer q made. Given the high-tech nature of Platinum's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson

5th Edition

1408030497, 9781408030493

More Books

Students also viewed these Accounting questions

Question

Dont off er e-mail communication if you arent going to respond.

Answered: 1 week ago