In 2012, Kirby Made Two Adjustments to Its Available for Sale

question 147

Essay

In 2012, Kirby made two adjustments to its available for sale investments.
Required:
Briefly explain the adjustments and why they occurred.

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Definitions:

Trade Discount

A reduction in the list price granted by a seller to a buyer, usually based on volume purchased or to maintain a business relationship.

Selling Expenses

Costs incurred directly and indirectly from the sale of goods or services, such as advertising, shipping, and sales staff salaries.

Perpetual Inventory System

An inventory management system where inventory levels are updated in real-time with each sale or purchase.

Periodic Inventory System

An inventory management system where the inventory count is conducted at specific intervals to determine the cost of goods sold.