N. Klein & Company had the following transactions in June. Using the matching concept, decide which of these transactions represented expenses for June
a. Received orders for goods with prices totaling $25,000.00; Goods to be delivered in July
b. Paid Office staff $9,750.00 for work performed in June
c. Products in Inventory costing $1,725 were found to be obsolete
d. Sold goods with a cost of $25,000.00 in June
e. Paid $750.00 for radio and advertising in June
f. Purchased additional Inventory for $27,000.00.
Answer Transactions b, c, d, e.
Answer to your questions is provided in a separate word document attached. It is also produced herewith for your ready reference.
(B Salary paid to office staff is to be recognized as expense in the current period as expenses incurred in current month relating to revenues earned i.e. work performed should be recorded as per matching concept.
© Products in Inventory costing $1,725 were found to be obsolete should be recognized and recorded as expenses (loss)on the ...
The solution discusses accounting for N.Klein and company.