Exam 5: Accounting for Retail Businesses

The following entry was recorded in the books of Brighty Company. ​ What is the impact of this entry on the accounting equation?

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

Record the following transactions for Sparky's Pet Shop using the general journal form provided below. Assume Sparky's uses a perpetual inventory system. Omit transaction descriptions from entries: ​

The following accounts and their current balances appear in the ledger of Cerelat Co. at the end of its fiscal year, June 30. Cerelat uses a periodic inventory system. ​ ​ ​ -A physical inventory at the end of June was $882,000. Estimated Returns Inventory is expected to increase to $16,500. What is the amount of cost of goods sold for Cerelat Co. for the year? Use the list of accounts and their current balances given above for Cerelat Co.

Match each of the following terms (a-h) with the correct definition below. -Inventory system that updates the inventory account for every purchase and sale transaction.

Using the following information for a periodic inventory system, what is the amount of net income?

The asset turnover ratio is the relationship between:

A company using the periodic inventory system has inventory costing $210 on hand at the beginning of a period. During the period, merchandise costing $635 is purchased. At year-end, inventory costing $160 is on hand. The cost of goods sold for the year is

Customer Refunds Payable is an account used to record merchandise returns from customers.

Details of a purchase invoice and related credit memo are summarized as follows: ​ Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period. Determine the following: (a) Amount of the cash discount allowed. (b) Amount to be paid by the purchaser if the discount is taken. (c) Cost of the merchandise to the purchaser if the discount is not taken.

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are

On March 4, Micro Sales makes $4,850 in sales on bank credit cards which charge a 2.5% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day. Journalize the sales and recognition of expense.

The following accounts and their current balances appear in the ledger of Cerelat Co. at the end of its fiscal year, June 30. Cerelat uses a periodic inventory system. ​ ​ ​ -A physical inventory at the end of June was $882,000. Estimated Returns Inventory is expected to increase to $16,500. Prepare a multiple-step income statement for Cerelat Co. showing how cost of goods sold was calculated for the year ended June 30.

Prepare a statement of stockholders' equity for Fernandez Company. Additional common stock of $100,000 was issued during the year.

When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a

A retailer purchases merchandise with a catalog list price of $30,000. The retailer receives a 15% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period?

The adjusting entry to account for normal inventory shrinkage involves

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

The following entry was recorded in the books of Brighty Company. What is the impact of this entry on the accounting equation? ​