ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 18

13) A liability for compensated absences such as vacations, for which it is expected that employees will be paid, should 14) On September 1, Horton purchased $13,300 of inventory items on credit with the terms 1/15, net 30, FOB destination. Freight charges were $280. Payment for the purchase was made on September 18. Assuming Horton uses the perpetual inventory system and the net method of accounting for purchase discounts, what amount is recorded as inventory from this purchase? 15) What is a discount as it relates to zero-interest-bearing notes payable? 16) Which of the following legal fees should be capitalized? 17) Which of the following costs of goodwill should be amortized over their estimated useful lives?