In addition, consider a technology manufacturing company that shelves units that may not operate as efficiently with age. Using FIFO, the COGS would be $1,100 ($5 per unit for the original 100 units, plus 50 additional units bought for $12) and ending inventory value would be $240 (20 units x $24). With real-time, location-specific inventory […]
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— Paul’s employee works half a pay period, so Paul accrues $500 of wages. Do you own a business? The entries for these estimates are also adjusting entries, i.e., impairment of non-current assets, depreciation expense and allowance for doubtful accounts. Sometimes companies collect cash from their customers for goods or services that are to be […]