Question - expense matching - identify the proper point to


Question - EXPENSE MATCHING - Identify the proper point to recognize expense for each of the following transactions:

(a) Kumar Inc. purchases on credit six custom sofas for $800 each in June. Two of the sofas are sold for $1,200 each in June. One of the sofas is sold for $1,000 in July and the remaining three sofas are sold for $1,500 each in August. All sales are for cash. Katharina pays its supplier in July.

(b) Kebs Co. purchases $500 of supplies in January. Half the supplies are used in January with the remaining half used in February.

(c) Jack Co. purchases $1,000 of inventory for cash in September. The entire inventory is sold in November.

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Accounting Basics: Question - expense matching - identify the proper point to
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