Q.4.1 In your own words explain the 3 reasons why inventory is classified as an asset. Q.4.2 There are 2 different inventory systems available for a business to use in order to control their trading inventory flows. What are these 2 systems? Q.4.3 Argon Traders is a business located in Centurion. Argon Traders is a registered VAT vendor and trades only with registered VAT vendors that can provide tax invoices. The business charges 15% VAT on all its sales. All amounts are inclusive of VAT, unless VAT is not applicable. Argon Traders sells good for cash and on credit. Transaction 1: On the 1st of March 2022 Argon Traders sold goods for R15 000 excluding VAT) on credit to Mr Neon. Goods are marked up 20% on cost
Q.4.1 In your own words explain the 3 reasons why inventory is classified as an asset. Q.4.2 There are 2 different inventory systems available for a business to use in order to control their trading inventory flows. What are these 2 systems? Q.4.3 Argon Traders is a business located in Centurion. Argon Traders is a registered VAT vendor and trades only with registered VAT vendors that can provide tax invoices. The business charges 15% VAT on all its sales. All amounts are inclusive of VAT, unless VAT is not applicable. Argon Traders sells good for cash and on credit. Transaction 1: On the 1st of March 2022 Argon Traders sold goods for R15 000 excluding VAT) on credit to Mr Neon. Goods are marked up 20% on cost
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 3DQ: Using the perpetual inventory system, what account is debited when a business finds that its...
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