[NOELLA]

Truck #3 has a list price of $24,500 and was acquired in an exchange for a computer server from Thomas's inventory. The computer cost $19,000 and is normally sold for $23,000. Systems uses a perpetual inventory. Provide the entry for acquisition.

I'm just unsure as to whether something should be done with the list price in the entry. Please advise how you would record it?

[morgaine300]

The fact that a truck was acquired will not make any difference in the entry except for one debit. If you sell inventory, you get an asset for it. Usually it is cash, or a promise to pay (accounts receivable). In this case it was a truck. (An asset is an asset is an asset is an asset.)

Since trucks are generally never sold at list, we'll assume the list price means nothing. The truck would normally be recorded at "cost." The cost in this case is 23,000 since that's basically the "price" the seller of said truck has agreed upon by taking inventory of that value. (i.e. the inventory is a better indicator of the value of this exchange than the list price of the truck.)

[NOELLA]

Thank you very much!

[morgaine300]

You're welcome. :)