intro to financial accounting - midterm 2 (chapters 5 - 9) - Rutgers nb Exam with accurate detailed answers

intro to financial accounting - midterm 2
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(chapters 5 - 9) Rutgers nb Exam with accurate || || || || || || || || ||




detailed answers
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buyer pays shipping cost - ✔✔debit inventory
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credit cash ||




seller pays shipping cost - ✔✔debit freight-out (delivery expense)
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credit cash ||




returning things bought on account - ✔✔debit AP
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credit inventory||




discount as seller - ✔✔debit cash
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debit sales discounts
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credit AR ||




discounts as buyer - ✔✔debit AP|| || || || ||




credit cash ||




credit inventory||




recording sales - ✔✔1st || || || ||




debit cash/AR
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credit SR ||




2nd

, debit COGS||




|| credit inventory
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accepting return from customer - ✔✔1st
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debit sales returns & allowances (selling price)
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credit AR (selling price)
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2nd
debit inventory (cost)
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credit COGS (cost)
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buyer failing to take discount, then taking it later - ✔✔failing to accept
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debit cash||




credit AR ||




accepting ||




debit cash||




debit sales discounts
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credit AR ||




adjusting entry - ✔✔debit COGS (difference between actual and mistake)
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credit inventory (difference between actual and mistake)
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FOB point - ✔✔buyer pays
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FOB destination - ✔✔seller pays
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