Exam 5: Merchandising Operations

Where do Inventory and Cost of goods sold appear?

What is the first step in the accounting cycle for a merchandising company?

Credit terms of 2/10,n/30 indicate that a 2% discount may be taken if the invoice is paid within 10 days,but the total invoice amount is due if paid on the 11^th through the 30^th day after the invoice date.

Journalize the following transactions (using the perpetual inventory method).Paid $230 cash for freight in on merchandise purchased.

Which of the following is subtracted from Gross profit to arrive at Operating income?

A trial balance is presented below.The company uses the perpetual inventory system.A physical inventory reveals only $28,000 of inventory on hand. Debit Credit Cash \ 12,600 Accounts receivable 2,400 Prepaid rent 800 Inventory 28,000 Accounts payable \ 4,200 Salary payable 1,000 Notes payable 800 Capital 13,800 Drawing 1,000 Sales revenue 96,000 Sales returns and allowances 1,600 Sales discounts 400 Cost of goods sold 25,000 Salary expense 21,000 Rent expens 14,000 Depreciation expense 8,500 Supplies expense 500 Total \ 115,800 \ 115,800 Please prepare the adjusting entry to Inventory.

Which of the following is the result of gross profit divided by net sales?

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200.Everett paid transportation costs of $100.On November 6,2012,merchandise of $1,000 from the November 1 sale was returned.The returned merchandise had cost $600.Everett received payment for the balance of the sale on November 10,2012. -If this were the only sales transaction of the period,what amount of Net sales revenue would be shown on the income statement?