Sasha and Michelle Form a Partnership

question 61

Multiple Choice

Sasha and Michelle form a partnership.Sasha contributes $19,000 cash and inventory with a current market value of $4000.While journalising this transaction:

• A)Inventory will be debited for $4000.
• B)Inventory will be credited for $2400.
• C)Inventory will be credited for $4000.
• D)Inventory will be debited for $2400.

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Definitions:

Inbound Logistics

The activities related to receiving, storing, and distributing inputs internally needed for the production of goods or services.

Outbound Logistics

The process involved in moving products from the production facility to the end user or intermediary, such as transportation and warehousing.

Procurement

The process of obtaining goods or services, typically for business purposes, including selection, negotiation, and acquisition.