General Accounting Question (Quick J/E answer)

  • Creator
    Topic
  • #197921
    Tcohle
    Participant

    Say you agree to sell goods to someone, but your terms are FOB Destination. You make the agreement on Dec. 28th, but the goods don’t get there until Jan. 3rd.

    There would be NO journal entry until Jan 3rd right? Like on Jan 3rd it would be

    AR Debit

    Sales Credit

    COGS Debit

    Inventory Credit

    but one should NOT make this entry on Dec 28th. So if a company did in fact record this transaction on Dec 28th, you would need to make an AJE to reverse those?

    AUD - 84
    BEC - 75
    FAR - 76
    REG - 87
    Ninja Notes/MCQ/Book/Audio for all

    FAR- 5/11/15 76!!
    AUD-10/31/15 63, 84!
    REG-7/12/16 72
    BEC-8/31/15 75!! Perfect Score!

    Wiley CPAExcel Platinum
    Ninja 10 pt combo for FAR/AUD/BEC

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