I need answers for 12-16. Thank you! 14. Assume all purchases are made on accoun
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I need answers for 12-16.
Thank you!
14. Assume all purchases are made on account. The journal entry to record an inventory purchase includes A debit to inventory and a credit to accounts payable. A debit to accounts payable and a credit to cash. A debit to accounts payable and a credit to inventory. A debit to cash and a credit to accounts payable a. b. c. d. 15. Goods Available for Sale a. b. c. d. Is reported on the Income Statement. Is increased by a debit. Is increased by a credit. Is the same dollar amount when valuing Cost of Goods Sold using FIFO or LIFO. 16. During inflationary prices a. FIFO will report the highest value for Cost of Goods Sold. b. LIFO will report the lowest value for Cost of Goods Sold c. Average Cost will report the highest value for Cost of Goods Sold d. FIFO will report the highest value for Ending Inventory e. LFIO will report the highest value for Ending Inventory.Explanation / Answer
12. option b: Transportation cost paid by purchaser
It is the additional inventory cost that is paid by purchaser and is added to the inventory account.
13. Option c : A debit to Accounts payable and credit to Inventory
Purchase return results in a decrease in Inventory and on the other hand, since there will be no payment made for the returned goods, accounts payable will also be reduced by the same amount.
14. Option a: A debit to Inventory and credit to Accounts payable.
Purchase results in a increase in Inventory and on the other hand, since there will be payment made for the goods, accounts payable will also be increased by the same amount
15. Option d: The same dollar amount when valuing costs of good sold using LIFO or FIFO
16. Option d: FIFO will report the highest value of ending inventory
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