chapter 8 final - Chapter 8 part 1 (questions 5,6,7,11,19,...

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Chapter 8 part 1 (questions 5,6,7,11,19, BE8-3, BE8-5) 5) The product financing arrangement is when an enterprise finances its inventory without reporting e Its reported as a sale on the financial statement 6) a-Inventory b-not shown, possibly in a note to the financial statements if material c- inventory d- inventory, seperately disclosed as raw materials e-not shown, possibly a note to the financial statements d-inventory or manufacturing supplies 7) The net income will decrease because the expenses was reduced due to the purchase of the good The company's balance sheet should also record the omission of purchases good There are risks that should be taken in consideration because the goods have not been delivered ye 11) cost per unit 60 cost with freight 63 with 2/10, n/30 61.8 19) December 31, 2010 inventory 975,000 Less:inventory, december 31,2009 800,000 Increment added during 2010 at base prices 175,000 increment added during 2010 at dec 31 189,000 add: inventory at dec 21,2009 800,000
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chapter 8 final - Chapter 8 part 1 (questions 5,6,7,11,19,...

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