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  3. classifying goods and costs as inventory or not f

Classifying Goods and Costs as Inventory or Not For each of the following items,...

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Accounting

Classifying Goods and Costs as Inventory or Not
For each of the following items, indicate whether it would be reported as inventory in the financial statements of the seller.
a. Freight-in charges for the receipt of merchandise inventory purchased f.o.b. shipping point. Current asset: inventoryN/Ab. Freight-out charges for delivery of merchandise to customer purchased f.o.b. destination.Current asset: inventoryN/Ac. Costs incurred to recall merchandise inventory due to safety issues. Current asset: inventoryN/Ad. State sales taxes paid on merchandise inventory purchased. Current asset: inventoryN/Ae. Insurance premiums paid on merchandise inventory held in storage. Current asset: inventoryN/Af. Costs to assemble purchased merchandise inventory. Current asset: inventoryN/Ag. Expedited air shipment charge for merchandise inventory purchased due to unexpected inventory shortage. Current asset: inventoryN/A

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