2a. Assume Tablet Direct sold inventory on account to eCOST.com on December 28 t

Question

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

Explanation / Answer

Solution 2a:

Income Statement - No amount related to this transaction

Balance sheet - $29,000 reported as inventory

Solution 2b:

Income statement - $38,000 reported as sales revenue and $29,000 reported as Cost of goods sold

Balance sheet - $38,000 reported as accounts receivables (until collected), no inventory

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