Question 1

Most retailers record all credit card sales as credit sales.

Accepted Answer

A) True 
 B)False

Question 2

Prepare a single-step income statement from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of the fiscal year.

Accepted Answer

The answer of Prepare a single-step income statement from the...

Question 3

Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?

Accepted Answer

A) 
  
B)  
  
C)  
  
D) 
  
A) 
  
B)  
  
C)  
  
D)

Question 4

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

Accepted Answer

A) 
  
B) 
   
C)  
  
D)  
  
A) 
  
B) 
   
C)  
  
D)

Question 5

Which of the lists below shows accounts that would be closed at the end of the fiscal period?

Accepted Answer

A)  Sales, Accounts Payable, Dividends, and Inventory 
B)  Cost of Goods Sold, Supplies, Wages Payable, and Dividends 
C)  Retained Earnings, Depreciation Expense, Notes Payable, Store Supplies 
D)  Sales, Cost of Goods Sold, Supplies Expense, and Wages Expense 
A)  Sales, Accounts Payable, Dividends, and Inventory 
B)  Cost of Goods Sold, Supplies, Wages Payable, and Dividends 
C)  Retained Earnings, Depreciation Expense, Notes Payable, Store Supplies 
D)  Sales, Cost of Goods Sold, Supplies Expense, and Wages Expense

Question 6

Who is responsible for the freight cost when the terms are FOB destination?

Accepted Answer

A)  the seller 
B)  the buyer 
C)  the ultimate customer 
D)  either the buyer or the seller 
A)  the seller 
B)  the buyer 
C)  the ultimate customer 
D)  either the buyer or the seller

Question 7

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Accepted Answer

A)  consigned 
B)  n/30 
C)  FOB shipping point 
D)  FOB destination 
A)  consigned 
B)  n/30 
C)  FOB shipping point 
D)  FOB destination

Question 8

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation.   ​

Accepted Answer

The entry increases

Question 9

Prepare a balance sheet for Fernandez Company assuming the current portion of the notes payable is $30,000.

Accepted Answer

The answer of Prepare a balance sheet for Fernandez Company...

Question 10

Which of the following accounts carry a normal credit balance?

Accepted Answer

A)  Sales Tax Payable, Cost of Goods Sold, and Sales 
B)  Inventory, Delivery Expense, and Sales 
C)  Customer Refunds Payable, Estimated Returns Inventory, and Sales 
D)  Sales Tax Payable, Customer Refunds Payable, and Sale 
A)  Sales Tax Payable, Cost of Goods Sold, and Sales 
B)  Inventory, Delivery Expense, and Sales 
C)  Customer Refunds Payable, Estimated Returns Inventory, and Sales 
D)  Sales Tax Payable, Customer Refunds Payable, and Sale

Question 11

In credit terms of 3/15, n/45, the "3" represents the

Accepted Answer

A)  number of days in the discount period 
B)  full amount of the invoice 
C)  number of days when the entire amount is due 
D)  percent of the cash discount 
A)  number of days in the discount period 
B)  full amount of the invoice 
C)  number of days when the entire amount is due 
D)  percent of the cash discount

Question 12

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

Accepted Answer

A)  $60,000 
B)  $70,000 
C)  $75,000 
D)  $80,000 
A)  $60,000 
B)  $70,000 
C)  $75,000 
D)  $80,000

Question 13

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

Accepted Answer

A)  Inventory 
B)  Purchases 
C)  Accounts Payable 
D)  Cost of Merchandise Purchased 
A)  Inventory 
B)  Purchases 
C)  Accounts Payable 
D)  Cost of Merchandise Purchased

Question 14

Journalize the following transactions assuming a perpetual inventory system:
​

Accepted Answer

The answer of Journalize the following transactions assuming a perpetual...

Question 15

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

Accepted Answer

The answer of Conquest Company uses a perpetual inventory system....

Question 16

The adjusting entry to account for estimated customer returns and allowances involves a

Accepted Answer

A)  debit to Customer Refunds Payable 
B)  credit to Customer Refunds Payable 
C)  debit to Estimated Returns Inventor 
D)  credit to Estimated Returns Inventory 
A)  debit to Customer Refunds Payable 
B)  credit to Customer Refunds Payable 
C)  debit to Estimated Returns Inventor 
D)  credit to Estimated Returns Inventory

Most retailers record all credit card sales as credit sales.

Prepare a single-step income statement from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of the fiscal year.

Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

Which of the lists below shows accounts that would be closed at the end of the fiscal period?

Who is responsible for the freight cost when the terms are FOB destination?

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation.

Prepare a balance sheet for Fernandez Company assuming the current portion of the notes payable is $30,000.

Which of the following accounts carry a normal credit balance?

In credit terms of 3/15, n/45, the "3" represents the

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

Journalize the following transactions assuming a perpetual inventory system:

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

The adjusting entry to account for estimated customer returns and allowances involves a

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 5: Accounting for Retail Businesses

Most retailers record all credit card sales as credit sales.

Prepare a single-step income statement from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of the fiscal year.

Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

Which of the lists below shows accounts that would be closed at the end of the fiscal period?

Who is responsible for the freight cost when the terms are FOB destination?

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation. ​

Prepare a balance sheet for Fernandez Company assuming the current portion of the notes payable is $30,000.

Which of the following accounts carry a normal credit balance?

In credit terms of 3/15, n/45, the "3" represents the

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

Journalize the following transactions assuming a perpetual inventory system: ​

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

The adjusting entry to account for estimated customer returns and allowances involves a

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation.

Journalize the following transactions assuming a perpetual inventory system: