Author Question: A printed price of a manufacturer or wholesaler that is subject to trade discounts is called a. net ... (Read 464 times)

JGIBBSON · **on:** Jul 5, 2018

A printed price of a manufacturer or wholesaler that is subject to trade discounts is called
a. net price.
b. gross price.
c. list price.
d. retail price.

Question 2

David Justice Company incurred the following expenditures related to the purchase and use of a new building that will be used as the growing company's corporate headquarters in Toronto, Canada.

Required: Put an X in the appropriate box to indicate which expenditures should be capitalized and which should be expensed:

Expenditure Capitalize Expense
560,000 spent for building materials (wood & brick)
256,000 spent for labor costs
78,000 architect's fee
80,000 rent for equipment used in the construction
52,000 annual utilities costs to operate the building
(in use on Feb 8)

90 cost to fix a broken window (June 3)
230 cost to clean a stained rug
3,900 annual janitorial costs to keep the building clean

Question 3

When an account receivable that has been written off is subsequently collected, the account receivable must firstbe reinstated before recording the receipt of payment.
a. True
b. False

Indicate whether the statement is true or false

krakiolit · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

c

Answer to Question 2

Expenditure Capitalize Expense
560,000 spent for building materials (wood & brick) X
256,000 spent for labor costs X
78,000 architect's fee X
80,000 rent for equipment used in the construction X
52,000 annual utilities costs to operate the building
(in use on Feb

X
90 cost to fix a broken window (June 3) X
230 cost to clean a stained rug X
3,900 annual janitorial costs to keep the building clean X

Answer to Question 3

True