Author Question: Rigby Company buys merchandise from Shoshone Company with an invoice cost of 10,000 and shipping ... (Read 54 times)

anshika · **on:** Jul 5, 2018

Rigby Company buys merchandise from Shoshone Company with an invoice cost of 10,000 and shipping terms of FOB shipping point. The freight costs amount to 1,000. Which of the following statements is TRUE?

A) Rigby Company will record freight-in costs of 1,000.
B) Shoshone Company will record freight-out costs of 1,000.
C) Shoshone Company will record freight-in costs of 1,000.
D) Rigby Company will have inventory cost of 10,000.

Question 2

An amount of an employee's gross pay which is exempt from federal income tax withholding is a(n)
a. additional withholding allowance.
b. withholding allowance.
c. zero bracket amount.
d. special withholding allowance.