ZuoTi.Pro
Question

Question 19 (1.8 points) A furniture factory shipped factory in December of the previous year. The balance due on the order w
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer: 2nd option

It should be recorded in January.

In order to record sale as revenue its required performance obligation must be completed (such as delivery of goods to the customer’s place). Once this has been done, the revenue becomes earned and should be in effect.

It happens in the month of January; therefore, sales revenue should reflect in January.

December should not be considered, since performance obligation meeting date is not in December but January.

February is unrelated.

March is the time for receiving payments – there should not be any waiting like that for recording sale entry; on accrual basis, sales should be recorded once it is earned.

0 0
Add a comment
Know the answer?
Add Answer to:
Question 19 (1.8 points) A furniture factory shipped factory in December of the previous year. The...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1.In December, X company receives an order for $50,000 worth of product. The order requests $30,000...

    1.In December, X company receives an order for $50,000 worth of product. The order requests $30,000 of product to be shipped in January and $20,000 to be shipped in February. Due to unexpected high demand, X company shipped only $15,000 of product in January and the remaining $35,000 shipped in February. The customer paid the entire $50,000 in March. How much revenue should X record in each of the months in question? 2.Dewey, Cheatem and How, LLP provided $40,000 of...

  • Question 1 The following information pertains to the physical inventory of Electronics Unlimited taken at December 31:...

    Question 1 The following information pertains to the physical inventory of Electronics Unlimited taken at December 31: Per Unit Product Units on Hand Cost NRV Audio equipment: Wireless audio receivers 338 $ 188 $ 199 Touchscreen MP3 players 253 223 203 Audio mixers 319 177 193 Audio stands 197 103 85 Video equipment: Televisions 473 298 253 5GB video cards 284 183 171 Satellite video recorders 205 618 647 Car equipment: GPS navigators 178 145 171 Double-DIN Car Deck with...

  • Note: I posted question yesterday but some fields are wrong as table  is wrong please answer question...

    Note: I posted question yesterday but some fields are wrong as table  is wrong please answer question correctly Q3/Novak Limited is trying to determine the amount of its ending inventory as at February 28, the company’s year end. The accountant counted everything in the warehouse in early March, which resulted in an ending inventory amount of $200,800. However, the accountant was not sure how to treat the following transactions, so he did not include them in the count. He has asked...

  • Question 15 6 points Save Answ Use the following information to answer the question below. On...

    Question 15 6 points Save Answ Use the following information to answer the question below. On January 1, 20x5, Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $17 per share. On February 1, 20x5, Falcon purchased 3,100 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2, 20x5. What amount of gain...

  • Blossom Company asks you to review its December 31, 2017, inventory values and prepare the necessary...

    Blossom Company asks you to review its December 31, 2017, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Blossom uses the periodic method of recording inventory. A physical count reveals $446,291 of inventory on hand at December 31, 2017. 2. Not included in the physical count of inventory is $25,498 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived...

  • Van Rushing Hunting Goods’ fiscal year ends on December 31. At the end of the 2021...

    Van Rushing Hunting Goods’ fiscal year ends on December 31. At the end of the 2021 fiscal year, the company had notes payable of $17.8 million due on February 8, 2022. Rushing sold 5.0 million shares of its $0.25 par, common stock on February 3, 2022, for $15.0 million. The proceeds from that sale along with $2.8 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8. Through his attorney, one of...

  • Mangold Limited is trying to determine he amount o its ending inventory as at February 28, the company's year end....

    Mangold Limited is trying to determine he amount o its ending inventory as at February 28, the company's year end. The accountant counted everything n the warehouse in arly March, which resulted n an cnding nventory amount af 202 accountant was not sure how to treat the folowing transactions, so he did not incdude them in the count. He has asknd for your help in determining whather or not the following transactions should be included in inventary 0 Howavor, the...

  • Vaughn Company asks you to review its December 31, 2020, inventory values and prepare the necessary...

    Vaughn Company asks you to review its December 31, 2020, inventory values and prepare the necessary adjustments to the books. The following information is given to you. 1. Vaughn uses the periodic method of recording inventory. A physical count reveals $411,058 of inventory on hand at December 31, 2020. 2. Not included in the physical count of inventory is $23,485 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived...

  • Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2021...

    Van Rushing Hunting Goods' fiscal year ends on December 31. At the end of the 2021 fiscal year, the company had notes payable of $9.7 million due on February 8, 2022. Rushing sold 1.5 million shares of its $0.25 par, common stock on February 3, 2022, for $7.5 million. The proceeds from that sale along with $2.2 million from the maturation of some 3-month CDs were used to pay the notes payable on February 8 Through his attorney, one of...

  • Exercise 8-5 (Part Level Submission) Sandhill Company asks you to review its December 31, 2017, inventory...

    Exercise 8-5 (Part Level Submission) Sandhill Company asks you to review its December 31, 2017, inventory values and prepare the necessary adjustments to the books. The following information is given to you 1. Sandhill uses the periadic method of recording inventory. A physical count reveals $352,335 of inventory on hand at December 31, 2017. 2. Not included in the physical count arrived in January. The invoice arrived and was recorded on December 31 inventory $20,130 of merchandise purchased on December...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT