When Does The Cost Of Inventory Become An Expense
When does inventory become a expense? Accounting issues? 3
Help me with this accounting question!
Thanks in advance!!
When does the cost of inventory become an expense?
A. When buying goods from suppliers
B. When paying suppliers
Vs. when the customer's money is deposited.
D. When shipping stock to customers
Celtic uses a percentage of sales to estimate bad debts. The net debt income for the year is $ 100,000 and the management estimates that 2% will be bad. The pre-adjusted bad loan balance is $ 2,000. The balance of the loan loss allowance after adjustment is:
A. $ 2,000
B. $ 4000
Vs. $ 6,000
D. ,000 12,000
The information provided by ME cannot be determined.
Inventory becomes an expense at the time of sale / delivery. If I did y / e to record it, it would say money and generate sales from the sale of goods. Then reduce the price of the goods sold and the inventory at the time of sale. So your answer is d.
Then basically 100,000 x 2% = 2,000. To get a manual journal entry, it is called bad debit and it creates a bad debt reserve. If the account already has 2,000 crores, I will add another 2,000 to make 4,000 crores. The answer is b
