Author Question: If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, ... (Read 96 times)

nmorano1 · **on:** Jul 5, 2018

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are
a. n/30
b. FOB shipping point
c. FOB destination
d. consigned

Question 2

The employees of Roll n Dough, Inc get paid every Friday for a 5-day workweek (Monday through Friday). The total payroll is 4,000 per day of work.

If the accounting period ends on Wednesday of a given week, what adjustment must be made to the company's accounting records?
A) Decrease Cash by 12,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
B) Increase Salaries payable by 20,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
C) Increase Salaries payable by 12,000 and decrease shareholders' equity by recognizing Salaries expense for the same amount.
D) No adjustment is necessary because there is no expense until the employees are paid on Friday.