Exam (elaborations)
INTERMEDIATE ACCOUNTING 1 EXAM #3 QUESTIONS AND ANSWERS
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INTERMEDIATE ACCOUNTING 1 EXAM #3 QUESTIONS AND ANSWERS
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INTERMEDIATE ACCOUNTING 1 EXAM#3 QUESTIONS AND ANSWERS
Inventory - Answer-finished goods, work in process, raw materials (anything used to
make goods to sell)
Perpetual Method journal entry - Answer-Purchase:
Dr. Inventory
Cr. Accounts Payable
Sell/COGS:
Dr. A/R
Cr. Sales
Dr. COGS
Cr. Inventory
Periodic Method Journal entry - Answer-Purchases:
Dr. Purchases
Cr. A/P
Sell/ COGS
Dr. A/R
Cr.
Updating Inventory Perpetual - Answer-No updates needed,
Close sales, COGS, to income summary
Updating Inventory Periodic - Answer-Update Inventory, establish COGS, close out
purchases and related accounts
Purch returns
Purch discounts
Ending Inventory
COGS
Dr. Purch
Dr. Beg Inv
Dr. Freight-in
Close COGS, and sales to Income Sum
FOB "Free on board" shipping point (title changes hands at) - Answer-belongs to buyer
FOB "Free on board" destination (title changes hands at) - Answer-belongs to seller
consignment - Answer-selling goods for someone else is not apart of your inventory
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