This count and verification typically occur at the end ofthe annual accounting period, which is often on December 31 of theyear. The Merchandise Inventory account balance is reported on thebalance sheet while the Purchases account is reported

Under the contribution margin method, the joint cost apportionment is done through marginal costing technique where the contribution can be understood as the surplus of sales over the variable cost. Separating by-product costs is important for accurately

Anushka will record revenue (income) of $400 for the sale made. A trade receivable (asset) will be recorded to represent Anushka’s right to receive $400 of cash from the customer in the future. As inventory (asset) has