Laramie Company Signed a Contract with a Service Provider for Security

question 87

True/False

Laramie Company signed a contract with a service provider for security services at a rate of $270 per month for the period of January through June.Laramie Company will pay the service provider the entire amount at the end of June.The company makes adjusting entries each month.During the month of June,it should record total security expense of $540.

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Definitions:

Shipment Contract

A contract under which a seller turns goods over to a carrier for delivery to a buyer. Both the title and risk of loss pass to the buyer when the goods are given to the carrier.

Proper Tender

A legal and financial term referring to the act of offering to deliver what is due under a contract, specifically in a manner that fulfills all conditions attached to the payment or delivery.

Loading Dock

An area of a building where goods are loaded onto and unloaded from vehicles or ships.

Properly Identified

Accurately recognized or distinguished from others based on specific characteristics or criteria.