The Columbus Company Has Three Departments A, B and C

question 20

Short Answer

The Columbus Company has three departments A, B and C. Material requisitions amounted to $10,000, $8,000 and $5,000, respectively, for departments A, B and C. In addition, $2,000 of indirect materials were used during the period. What is the entry to record the materials used during the period?

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Definitions:

Order Paper

A financial document that requires payment to a specific person or entity and is transferable by endorsement.

Negotiation

The process of discussing something with others to reach a mutual agreement.

FTC

stands for the Federal Trade Commission, a U.S. government agency tasked with consumer protection and the enforcement of antitrust laws to promote competition.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and for value, and thus has certain rights to enforce the instrument free from many defenses.