Question

Farley Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking.

a.Goods shipped on consignment by Farley to another company________.

b. Goods in transit from a supplier shipped FOB destination______.

c. Goods sold but being held for customer pickup_________.

d. Goods held on consignment from another company________.

Answer 1

Answer: A.Freight in

B.purchase return and allowance

C.purchase

D.sales discount

Explanation: A.Freight in the transportation cost associated with the delivery of a goods from the supplier to the receiving end.

B.purchase return and allowance. This occurs when a purchaser and inventory back to the seller.

C.purchase. This is the good and services bought by a company.

D.sales discount. A sales discount is usually offer for prompt payment. Is an incentive sellers offer for early payment.