A printer has recently been purchased for your company.
At what point should data relating to the printer be recorded in the company's inventory?
A) When the printer has been ordered
B) After the warranty period has expired
C) Immediately upon receipt of the printer
D) After unpacking and checking the contents
2007-11-07 18:13:27 · 2 answers · asked by t@bles 1 in Business & Finance ➔ Other - Business & Finance
I would say (D).
What if you add it to your inventory, and then you open it up and the box is empty, or the printer is damaged and you have to send it back, or if it has been replaced by a different model because the one you ordered has been superseded and could not be supplied?
Until you actually accept it from the supplier, it shouldn't be listed in your inventory. And you would want to sure that you inventory it based on what it is, not on what it is supposed to be.
This is just me trying to think rationally.
2007-11-07 18:25:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A. When ordered. If the printer is for use by the company, not for resale, then it is really not inventory.
An accrual entry is not necessary unless there is some non-standard terms to the purchase, ie a company agrees to purchase 20 chairs per month for 14 months
2007-11-08 02:43:50 · answer #2 · answered by Gatsby216 7 · 0⤊ 0⤋