Question
Proli located in Vidalia, GA, uses FOB destination as part of its shipping terms. During the December 31, 2019 year-end audit, you noted that a
- Proli located in Vidalia, GA, uses FOB destination as part of its shipping terms. During the December 31, 2019 year-end audit, you noted that a shipment to Miracle Heel located in Hong Kong made on 12/31/19 was reported as income in 2019.
You obtained the following information about this transaction:
Accounts Delivery Product
Receivable Expense Sales Cost
16,120 330 16,450 11,130
Required: Was the accounting for this transaction appropriate at 12/31/19? If not, propose the entry(ies) necessary for Proli to correct reflect the transaction in its books.
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
1st Edition
0073382256, 9780073382258
