Question 1

Tracking individual inventory items is tracked in the:

Accepted Answer

A) accounts receivable ledger. 
B) inventory ledger. 
C) accounts payable ledger. 
D) purchases journal. 
A) accounts receivable ledger. 
B) inventory ledger. 
C) accounts payable ledger. 
D) purchases journal.

Question 2

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Sold merchandise for cash. - Periodic
Debit ________ & ________ Credit ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 3

If a mistake is made in calculating ending inventory, it will take three accounting periods to be self-correcting.

Accepted Answer

A) True 
 B)False

Question 4

The ending inventory for this year is understated. This error would cause:

Accepted Answer

A) the period's net income to be overstated. 
B) the period's net income to be understated. 
C) the period end assets to be overstated. 
D) None of these are correct. 
A) the period's net income to be overstated. 
B) the period's net income to be understated. 
C) the period end assets to be overstated. 
D) None of these are correct.

Question 5

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Returned merchandise inventory for credit - Periodic
Debit ________ & ________ Credit ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 6

The ________ system of accounting for inventory provides information on a transaction-by-transaction basis.

Accepted Answer

The answer of The ________ system of accounting for inventory...

Question 7

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Customer returned goods - Periodic
Debit ________ & ________ Credit ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 8

The inventory method where the cost flows tend to follow the physical flow is:

Accepted Answer

A) LIFO. 
B) FIFO. 
C) weighted-average. 
D) specific invoice. 
A) LIFO. 
B) FIFO. 
C) weighted-average. 
D) specific invoice.

Question 9

Which of the following should not be included in inventory costs?

Accepted Answer

A) Goods that are not resalable 
B) Goods on consignment to you 
C) Goods for sale at a value that is greater than cost 
D) Both A and B are correct. 
A) Goods that are not resalable 
B) Goods on consignment to you 
C) Goods for sale at a value that is greater than cost 
D) Both A and B are correct.

Question 10

Under the periodic inventory system, in addition to making the entry to record a sale, a company would:

Accepted Answer

A) debit Merchandise Inventory and credit Cost of Goods Sold. 
B) debit Cost of Goods Sold and credit Merchandise Inventory. 
C) debit Cost of Goods Sold and credit Purchases. 
D) make no additional entry. 
A) debit Merchandise Inventory and credit Cost of Goods Sold. 
B) debit Cost of Goods Sold and credit Merchandise Inventory. 
C) debit Cost of Goods Sold and credit Purchases. 
D) make no additional entry.

Question 11

In assigning a cost to ending inventory, the cost flow must follow the physical flow.

Accepted Answer

A) True 
 B)False

Question 12

Calculate the ending inventory under each of the following methods given the information below about purchases and sales during the year. Assume a periodic inventory system.
   Sales for April: 115 units
a)________ FIFO
b)________ LIFO
c)________ Weighted-average

Accepted Answer

Available for sale = 20 + 70 + 50 = 140;

Question 13

Given the following accounts:
   Indicate the account(s)to be debited and credited to record the following transactions.
-Paid for merchandise after the discount period expired. - Periodic
Debit ________ & ________ Credit ________ & ________

Accepted Answer

The answer of Given the following accounts:
   Indicate...

Question 14

Barry's Books uses a periodic inventory system. Barry's Books sold 45 copies of Helpful Hints during September. Other data for September include:   Cost of goods sold under the FIFO method is:

Accepted Answer

A) $956. 
B) $514. 
C) $1,020. 
D) some other number 
A) $956. 
B) $514. 
C) $1,020. 
D) some other number

Question 15

St. Paul Corporation has a normal gross profit of 45%. The current year's beginning inventory was $2,500, purchases were $9,000, and retail sales were $15,000. The estimated ending inventory under the gross profit method is:

Accepted Answer

A) $4,750. 
B) $3,250. 
C) $8,220. 
D) $4,050. 
A) $4,750. 
B) $3,250. 
C) $8,220. 
D) $4,050.

Question 16

If a change is made in the inventory valuation method, full disclosure should be indicated.

Accepted Answer

A) True 
 B)False

Question 17

An inventory ledger may be used to track inventory.

Accepted Answer

A) True 
 B)False

Question 18

Bright Garden Center had the following data for May:   The cost of the estimated inventory on May 31 under the retail method is:

Accepted Answer

A) $616. 
B) $784. 
C) $1,400. 
D) $3,500. 
A) $616. 
B) $784. 
C) $1,400. 
D) $3,500.

Question 19

Chewy Candy has a beginning inventory of $1,000. June purchases were $3,000, and retail sales were $5,000. The store has a normal gross profit of 50%. What is the June 30 estimated ending inventory at cost under the gross profit method?

Accepted Answer

A) $2,100 
B) $2,000 
C) $1,700 
D) $1,500 
A) $2,100 
B) $2,000 
C) $1,700 
D) $1,500

Question 20

Chewy Candy has a beginning inventory of $1,000 with a retail value of $1,800. June purchases were $3,000, with a retail value of $4,700 and retail sales were $4,200.What is the June 30 estimated ending inventory at cost under the retail method?

Accepted Answer

A) $351 
B) $949 
C) $4,161 
D) $1,416 
A) $351 
B) $949 
C) $4,161 
D) $1,416

Exam 15: Accounting for Merchandise Inventory

Tracking individual inventory items is tracked in the:

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold merchandise for cash. - Periodic Debit ________ & ________ Credit ________ & ________

If a mistake is made in calculating ending inventory, it will take three accounting periods to be self-correcting.

The ending inventory for this year is understated. This error would cause:

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Returned merchandise inventory for credit - Periodic Debit ________ & ________ Credit ________ & ________

The ________ system of accounting for inventory provides information on a transaction-by-transaction basis.

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Customer returned goods - Periodic Debit ________ & ________ Credit ________ & ________

The inventory method where the cost flows tend to follow the physical flow is:

Which of the following should not be included in inventory costs?

Under the periodic inventory system, in addition to making the entry to record a sale, a company would:

In assigning a cost to ending inventory, the cost flow must follow the physical flow.

Calculate the ending inventory under each of the following methods given the information below about purchases and sales during the year. Assume a periodic inventory system. Sales for April: 115 units a)________ FIFO b)________ LIFO c)________ Weighted-average

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid for merchandise after the discount period expired. - Periodic Debit ________ & ________ Credit ________ & ________

Barry's Books uses a periodic inventory system. Barry's Books sold 45 copies of Helpful Hints during September. Other data for September include: Cost of goods sold under the FIFO method is:

St. Paul Corporation has a normal gross profit of 45%. The current year's beginning inventory was $2,500, purchases were $9,000, and retail sales were $15,000. The estimated ending inventory under the gross profit method is:

If a change is made in the inventory valuation method, full disclosure should be indicated.

An inventory ledger may be used to track inventory.

Bright Garden Center had the following data for May: The cost of the estimated inventory on May 31 under the retail method is:

Chewy Candy has a beginning inventory of $1,000. June purchases were $3,000, and retail sales were $5,000. The store has a normal gross profit of 50%. What is the June 30 estimated ending inventory at cost under the gross profit method?

Chewy Candy has a beginning inventory of $1,000 with a retail value of $1,800. June purchases were $3,000, with a retail value of $4,700 and retail sales were $4,200.What is the June 30 estimated ending inventory at cost under the retail method?

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Sold merchandise for cash. - Periodic Debit & Credit &

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Returned merchandise inventory for credit - Periodic Debit & Credit &

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Customer returned goods - Periodic Debit & Credit &

Calculate the ending inventory under each of the following methods given the information below about purchases and sales during the year. Assume a periodic inventory system. Sales for April: 115 units a) FIFO b) LIFO c) Weighted-average

Given the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid for merchandise after the discount period expired. - Periodic Debit & Credit &