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?