ACC 304 All Assignments ACC 304 All Assignments | Page 12

11) Where is debt callable by the creditor reported on the debtor's
financial statements?
12) Sawyer Company self-insures its property for fire and storm
damage. If the company were to obtain insurance on the property, it
would cost them $1,500,000 per year. The company estimates that on
average it will incu r losses of $1,200,000 per year. During 2014,
$525,000 worth of losses were sustained. How much total expense
and/or loss should be recognized by Sawyer Company for 2014?
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?