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Sun Mar 4 11:00 PM Clag apter 08 Pre-Built Problems Help Save &Exit; 9 Check m T

ID: 2539463 • Letter: S

Question

Sun Mar 4 11:00 PM Clag apter 08 Pre-Built Problems Help Save &Exit; 9 Check m The following Inventory transactions took place near December 31. 2018, the end of the Rasul Compeny's fiscal year-end: 1. On December 27, 2018, merchandise costing $2.000 was shipped to the Myers Company on consignment. The 2. On January 5, 2019, merchandise costing $8,000 nts location on December 29, but none of the merchandise was sold by the end of the year The merchandise was not included in the 2018 ending inventory. was received from a supplier and recorded as a purchase on that date and not Included in the 2018 ending inventory. The invoice revealed that the shipment was made to.b. shipping point on December 28, 2018. Print 3. On December 29, 2018, the company shipped merchandise costing S12.000 to a customer fo.b. destination. The goods, which 4. Merchandise costing $4,000 was recelved on December 28, 2018, on consignment from the Aborn Company A purchase was not 5. Merchandise costing $6,000 was received and recorded as a purchase on January 8, 2019. The invoice reveeled that the nding inventory. The sale was recorded In 2018. recorded and the merchandise was not included in 2018 ending inventory. merchandise was shipped from the supplier on December 28, 2018, fo.b. destination. The merchandise was not included in 2018 ending inventory. Required: Select whether Rasul correctly accounted for each of the above transactions 2. The transaction 3. The transaction 4. The transaction 5. The transaction correctly accounted for correctly accounted for correctly accounted for correctly accounted for correctly accounted for Prev 90, 11 Next>

Explanation / Answer

Answer 1.

The transaction is not correctly accounted for

The goods send on consignment, should be recorded in the stock of consignor nor consignee. Therefore, the goods should be included in the Rasul ending inventory.

Answer 2.

The transaction is not correctly accounted for

The legal ownership of goods sold through FOB Shipping point, when the goods are shipped. Therefore, the goods should be included in the Rasul ending inventory.

Answer 3.

The transaction is not correctly accounted for

The title of goods transferred in FOB Destination, when the goods are delivered at the customer location. Therefore, the goods should be included in the Rasul ending inventory.

Answer 4

The transaction is correctly accounted for

The goods send on consignment, should be recorded in the stock of consignor nor consignee. Therefore, the goods should not be included in the Rasul ending inventory.

Answer 5.

The transaction is correctly accounted for

The title of goods transferred in FOB Destination, when the goods are delivered at the customer location. Therefore, the goods should not be included in the Rasul ending inventory.

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