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Unformatted text preview: 400 Purchases Credit 400 credit received for spoiled merchandise 4/6 Accounts Payable 1,400 Cash 1,400 paid amount owed to Boilermaker Company 4/18 Accounts Payable 1,600 Cash 1,600 paid amount owed to Gopher Corp. E8) Seller pays shipping costs The shipment still belongs to the shipper. Miller cannot include the sale yet because it has not been received by the buyer. The buyer would already own the merchandise as soon as it was shipped. Michael’s could include it on their balance sheet and Miller could include it in their income statement. E11) 1. 4860 2. 2515 3. 3230 4. 3092.73 E15) There is no effect because Suncoast receives cash from the insurance company which is an asset just like the inventory it replaces....
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- Spring '07
- Financial Accounting, Expense, Shipping, Purchases Credit credit