FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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During December, Camp David Inc. purchased $5,000 of supplies for use in its business. At the end of December, 70% had been paid but only 20% of the supplies were still on hand. Under accrual accounting, what amounts will appear on the company’s
supplies inventory: $5,000; accounts payable: $3,500
supplies inventory: $1,000; accounts payable: $1,500
supplies inventory: $1,000; accounts payable: $5,000
supplies inventory: $4,000; accounts payable: $1,500
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- During its first month of business, Dig the Dogs, Inc. purchased $700 of hotdogs of which it paid $300 and owes the rest. During the month, it sold 3/4 of its inventory for $1,000 on account. What is the amount of Cost of Goods Sold for the month ended?arrow_forwardFestivus Company has working capital of $140,680 on December 30. On December 31 it has the following transactions: An account payable for $10,000 is paid off An account receivable of $1,000 is written off (Festivus does not use the direct write-off method) $16,600 more inventory is purchased on account. If Account Payable balance on December 30th is $10,000 what is the Days Accounts Payable are outstanding? Use ending balance of AP instead of the average. Festivus' Gross profit percentage isarrow_forward
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