Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

What am I doing wrong? 2a. Assume Tablet Direct sold inventory on account to eCOST.com on December 28 that was to be delivered January 3.

image text in transcribedWhat am I doing wrong?

2a. Assume Tablet Direct sold inventory on account to eCOST.com on December 28 that was to be delivered January 3. The inventory cost Tablet Direct $29,000 and the selling price was $38,000. What amounts, if any, related to this transaction would be reported on Tablet Direct's balance sheet and income statement in December? (Select all that apply.) Balance sheet: $29,000 reported as inventory Income statement: $38,000 reported as sales revenue and $29,000 reported as cost of goods sold Income statement: no amounts related to this transaction Balance sheet: $38,000 reported as accounts receivable (until collected) Balance sheet: $38,000 reported as accounts receivable Balance sheet: no amounts related to this transaction Balance sheet: $38,000 reported as accounts receivable (until collected), no inventory 2b. Assuming the same information from requirement 2a, what amounts, if any, related to this transaction would be reported on PC Mall's balance sheet and income statement in January? (Select all that apply.) Balance sheet: $29,000 reported as inventory Income statement: $38,000 reported as sales revenue and $29,000 reported as cost of goods sold. Income statement: no amounts related to this transaction Balance sheet: $38,000 reported as accounts receivable (until collected) Balance sheet: $38,000 reported as accounts receivable Balance sheet: no amounts related to this transaction Balance sheet: $38,000 reported as accounts receivable (until collected), no inventory

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions