Some of the Common Approaches That Buying Firms Use to Punish

question 5

True/False

Some of the common approaches that buying firms use to punish suppliers are: litigation and punitive damages,not awarding future business,downgrading a supplier and billing the supplier for failures.

Journalize various types of transactions, including sales, returns, and freight charges, for both buyers and sellers under perpetual inventory system.

Prepare a cost of goods sold section of the income statement under periodic inventory system.

Calculate gross profit and prepare related sections of the income statement.

Develop skills in journalizing adjusting entries for inventory shrinkage under perpetual inventory system.