ECONOMICS

Detailed explanation-1: -In the weeks prior to Mother’s Day, the owner made numerous amounts of jewelry for display in her store. Although many customers came into the store and purchased items, the owner still has several boxes of handcrafted jewelry in her stockroom. What is possible cause for this? Too much inventory in the store.

Detailed explanation-2: -Purchase Allowance. b. An amount granted to the purchaser as an incentive to keep goods that are not “as ordered."

Detailed explanation-3: -Merchandise inventory comprises the goods that retailers and resellers have purchased with the intent to sell to customers. Merchandise inventory is categorized as a current asset on the company’s balance sheet. For some retailers, it is their biggest asset.

Detailed explanation-4: -The cost of inventory that is still on hand and has NOT been sold to customers is called: Inventory, a current asset that appears on the balance sheet. The ABC Company is preparing its financial statements on December 31. During the year, they purchased IBM stock for $20, 000.

Detailed explanation-5: -The following statements regarding merchandise inventory are true except: Merchandise inventory is reported on the balance sheet as a current asset.