78. Goods that are consigned to another party: a. belong to the other party beca

Question

78. Goods that are consigned to another party: a. belong to the other party because title has passed b. belong to the company that has consigned them c. belong to the consignor d. b and c only 79. Chewy Candy has a beginning inventory of $1,000 with a retail value of $1,800. June purchases were $3,000, with a retail value of $4,700 and retail sales were $4,200. What is the June 30 estimated ending inventory at cost under the retail method? a. $351 b. $949 c. $4,161 d. $1,416 80. The entry to record the disposal of a laptop computer with a cost of $2,500 and an accumulated depreciation of $1,500 would be: a. debit Depreciation Expense, $2,500; credit Equipment $2,500 b. debit Accumulated Depreciation $1,500; debit Loss on Disposal of an Asset $1,000 credit Equipment $2,500 c. debit Equipment $2,500; credit Accumulated Depreciation $2,500 d. debit Cash $2,500; credit Equipment $2,500

Explanation / Answer

78 Goods that are consigned to another party belong to the the consignor. Option C is correct 79 Cost Retail Beg. inventory 1000 1800 Add: Purchases 3000 4700 Total 4000 6500 Cost to retail percentage 61.538% (4000/6500) Ending inventory at retail = 6500-4200 = 2300*61.538%= $1416 Option D is correct 80 Debit Accumulated depreciation $1500;Debit loss on disposal of an asset $1000; Credit Equipment $2500 Option B is correct

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