COMMERCE 1AA3 Lecture Notes - Lecture 1: Root Mean Square
9 Dec 2017
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Inventory is an asset held for resale or used to produce services and goods for sales. Manufacturing rms have three types of inventory: (not on exam: raw materials, work in process, finished goods. Yes/no: no, because it will not be sold right away, its a long-term asset, journal entry for the sale of demo: The cost principal requires that inventory be recorded at the prices paid plus all costs incurred to bring the inventory to saleable conditions: invoice price, freight and insurance, inspection cost, preparation costs. When customers are sold damaged merchandise, they can either: return the merchandise and receive full refund: sales return. Monday, october 23, 2017: keep the merchandise, but receive some credit (either reduction in a/r, store credit, or cash): sales allowance. If the merchandise get damaged while in transit, the loss will accrue to: the buyer if the merchandise is shipped fob shipping point, the seller if the merchandise is shipped fob destination.
