Expense Matching Identify the proper point to recognize expense for each of the following transactions. a. Katharina...

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Accounting

Expense Matching Identify the proper point to recognize expensefor each of the following transactions.
a. Katharina Inc. purchases on credit six custom sofas for $800each in June. Two of the sofas are sold for $1,200 each in June.One of the sofas is sold for $1,000 in July and the remaining threesofas are sold for $1,500 each in August. All sales are for cash.Katharina pays its supplier in July.
b. Kuyu Co. purchases $500 of supplies in January. Half thesupplies are used in January with the remaining half used inFebruary.
c. Jane Co. purchases $1,000 of inventory for cash in September.The entire inventory is sold in November.

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AExpense should be recognised in the period in which it is incurred expense in relation to such revenue incurredirrespective whether cash is received or not In the given caseexpense should be See Answer

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Expense Matching Identify the proper point to recognize expensefor each of the following transactions.a. Katharina Inc. purchases on credit six custom sofas for $800each in June. Two of the sofas are sold for $1,200 each in June.One of the sofas is sold for $1,000 in July and the remaining threesofas are sold for $1,500 each in August. All sales are for cash.Katharina pays its supplier in July.b. Kuyu Co. purchases $500 of supplies in January. Half thesupplies are used in January with the remaining half used inFebruary.c. Jane Co. purchases $1,000 of inventory for cash in September.The entire inventory is sold in November.