Recording an Inventory Purchase Shields Company has purchased inventories incurring the following costs: (a) the...
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Accounting
Recording an Inventory Purchase
Shields Company has purchased inventories incurring the following costs: (a) the invoice amount of $8,000, (b) shipping charges of $480, (c) interest of $160 on the $8,000 borrowed to finance the purchase, and (d) $80 for the cost of moving the inventory to the company's warehouse.
Required Determine the cost to be assigned to the inventory. $Answer Record the purchase using "T" accounts.
Inventory (A)
(a)
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(b)
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(c)
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(d)
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Accounts Payable (L)
(a)
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(b)
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(c)
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(d)
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Notes Payable (L)
(a)
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(b)
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(c)
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(d)
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Interest Expense, Discounts Lost (E)
(a)
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(b)
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(c)
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(d)
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