Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 29, platinum shipped goods with a sell

On December 29, Platinum shipped goods with a selling price of $80,000 and a cost...

90.2K

Verified Solution

Question

Accounting

image

On December 29, Platinum shipped goods with a selling price of $80,000 and a cost of $60,000 to District Sales Corporation FOB shipping point. The goods arrived on January 3. District Sales had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Platinum had authorized the shipment and said that if District wanted to ship the goods back next week, it could. Included in the count was $48,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Platinum's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all." Correct inventory

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students