Beginning Inventory BI: 100 units @ 10 = $1000 200 units @ 11 = $2200 150 units @ 12 = $1800 Use a weighted average $5,000 = 450 11.11
Cost flow assumption Specific Identification ID for an item, ex: a car and its serial #, homes, etc.
FIFO First I
Long term assets Depreciation Depletion Ammernization
Regardless of the type of asset it must have a historical cost. Tax will be figured into the total cost and depreciation will be figured from that amount. "Basket" land and building at one time,
Review for test 2 going off of the outline FINAL 730 AM SAME CLASSROOM Chapter 7 Will stick to the basics when it comes to bad debt expense and when it comes to allowing it. Allowance for UA is a contra asset account that reduces receivables *Know th
Chapter 5 Inventory is an asset. It is short term, and current. Will be converted to cash within 12 months. Appendix describes perpetual further.
In a perpetual system, the inventory is always updated. So when you look at the ledger it will reflect