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the Foster Company sold

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On July 1, 2013, the Foster Company sold inventory to the Slate Corporation for $300,000. Terms of the sale called for a down payment of $75,000 and three annual installments of $75,000 due on each July 1, beginning July 1, 2014. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $120,000. The company uses the perpetual inventory system.;Required;1.;Prepare the necessary journal entries for 2013 and 2014 using point of delivery revenue recognition. Ignore interest charges.;2. Prepare the necessary journal entries for 2013 and 2014, applying the installment sales method.;3. Prepare the necessary journal entries for 2013 and 2014, applying the cost recovery method.

 

Paper#79765 | Written in 18-Jul-2015

Price : $27
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