Question
The company received, on December 1, X5, an invoice for repairs it has just carried out on one of these production equipment. The invoice, which
The company received, on December 1, X5, an invoice for repairs it has just carried out on one of these production equipment. The invoice, which amounts to $ 20,000, was not recorded by the accountant. The latter plans to settle this invoice in January X6. From this information, enter the correct answer below.
a) The amount of compensation should be divided between exercises X5 and X6. b) This corresponds to an account payable for X5. The repair amount should be posted as an expense for year X5 through an adjustment posting. c) The amount of the repair should be recorded as an expense for fiscal year X6, ie when the invoice is paid. d) None of the above e) The repair amount should be added to the cost of the equipment (capitalization) since this expense increases the service potential of the asset.
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