Author Question: Emma Co sold to Isabella Co merchandise on account FOB shipping point, 2/10, net 30, for 15,000 . ... (Read 88 times)

Yi-Chen · **on:** Jul 5, 2018

Emma Co sold to Isabella Co merchandise on account FOB shipping point, 2/10, net 30, for 15,000 . Emma Co prepaid the 750 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co make to record payment of the merchandise if Isabella Co pays within the discount period?
a. Accounts PayableEmma Co., debit 15,000 Cash, credit 15,000
b. Accounts PayableEmma Co., debit 15,450 Cash, credit 15,450
c. Accounts PayableEmma Co., debit 15,000 Freight In, debit 750 Cash, credit 15,750
d. Accounts PayableEmma Co., debit 15,750 Merchandise Inventory, debit 300 Cash, credit 16,050

Question 2

The ERM framework addresses four categories of management objectives. Which category concerns high-level goals, aligned with and supporting its mission?
a. compliance
b. operations
c. reporting
d. strategic