Expense Matching Identify the proper point to recognize expense for each of the following transactions....
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Accounting
Expense Matching Identify the proper point to recognize expense for each of the following transactions.
a. Katharina Inc. purchases on credit six custom sofas for $800 each 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 three sofas 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 the supplies are used in January with the remaining half used in February.
c. Jane Co. purchases $1,000 of inventory for cash in September. The entire inventory is sold in November.
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