What do you understand by invoice price .name the items wch a re recorded at the invoice price in the consignment account.Give journal entries passed for the adjustment of loading the respect of each item.
Answers
Answered by
9
Invoice price is the initial price that the manufacturer charges the dealer. This price is usually different from actually the manufacturer pays for the product in the end. It is often higher than the dealer's actual cost.
Items recorded in the invoice price are:
Information of the agent :
Consignment number, name and address of the manufacturer and name of purchase agent.
Information of the products:
Item code, description, letter of credit, quantity, unit price.
Journal entries all recorded in either debit or credit
When the goods are sent including the consignment account
Adjustment for the difference between cost and actual price
Expenses paid
Receiving advance
Consignee accepted a bill of exchange as an advance
goods are sold to consignee
expenses paid by agent
Adjustment of closing stock
Items recorded in the invoice price are:
Information of the agent :
Consignment number, name and address of the manufacturer and name of purchase agent.
Information of the products:
Item code, description, letter of credit, quantity, unit price.
Journal entries all recorded in either debit or credit
When the goods are sent including the consignment account
Adjustment for the difference between cost and actual price
Expenses paid
Receiving advance
Consignee accepted a bill of exchange as an advance
goods are sold to consignee
expenses paid by agent
Adjustment of closing stock
Answered by
1
What do you understand by invoice price? Name the items which are recorded at the invoice
price in the consignment account. Give journal entries passed for the adjustment of loading
the respect of each item.
Similar questions