Question 1

Complete the following data taken from the condensed income statements for merchandising Companies X,Y,and Z.

Accepted Answer

@#IMG-DLM& OR Rearranged in th

Question 2

A sales invoice included the following information: merchandise price,$12,000; terms 1 / 10,n / eom; FOB shipping point with prepaid freight of $900 added to the invoice.Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period,what is the amount of cash that should be received by the seller?

Accepted Answer

A)  $12,285 
B)  $11,500 
C)  $10,480 
D)  $11,385 
A)  $12,285 
B)  $11,500 
C)  $10,480 
D)  $11,385

Question 3

Journalize the entries to record the following selected transactions:

Accepted Answer

The answer of Journalize the entries to record the following...

Question 4

Journalize the following transactions assuming a perpetual inventory system:
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Accepted Answer

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

Question 5

When the perpetual inventory system is used,the inventory sold is shown on the income statement as

Accepted Answer

A)  cost of goods sold 
B)  purchases 
C)  purchases returns and allowances 
D)  net purchases 
A)  cost of goods sold 
B)  purchases 
C)  purchases returns and allowances 
D)  net purchases

Question 6

Using the letter preceding each account,arrange the following selected accounts in the order they would normally appear in a chart of accounts of a company that uses a multiple-step income statement.

Accepted Answer

(b)(c)(a)(

Question 7

In recording the cost of goods sold for cash,based on data available from perpetual inventory records,the journal entry is

Accepted Answer

A)  debit Cost of Goods Sold; credit Sales 
B)  debit Cost of Goods Sold; credit Inventory 
C)  debit Inventory; credit Cost of Goods Sold 
D)  debit Accounts Receivable; credit Inventory 
A)  debit Cost of Goods Sold; credit Sales 
B)  debit Cost of Goods Sold; credit Inventory 
C)  debit Inventory; credit Cost of Goods Sold 
D)  debit Accounts Receivable; credit Inventory

Question 8

A seller may grant a buyer a reduction in selling price and this is called a customer discount.

Accepted Answer

A) True 
 B)False

Question 9

A chart of accounts for a merchandising business

Accepted Answer

A)  usually is the same as the chart of accounts for a service business 
B)  usually requires more accounts than does the chart of accounts for a service business 
C)  usually is standardized by the FASB for all merchandising businesses 
D)  always uses a three-digit numbering system 
A)  usually is the same as the chart of accounts for a service business 
B)  usually requires more accounts than does the chart of accounts for a service business 
C)  usually is standardized by the FASB for all merchandising businesses 
D)  always uses a three-digit numbering system

Question 10

On March 3,Bluebird Sales makes $4,350 in cash sales of general merchandise that has a cost of $1,512.Bluebird uses a perpetual inventory system.
(a)Journalize the sale.
(b)Journal the cost of goods sold.

Accepted Answer

(a)Mar.3 Cash 4,350

Question 11

Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?

Accepted Answer

A)  Purchases 
B)  Freight In 
C)  Selling Expense 
D)  Inventory 
A)  Purchases 
B)  Freight In 
C)  Selling Expense 
D)  Inventory

Question 12

Sales to customers who use bank credit cards,such as MasterCard and VISA,are generally treated as credit sales.

Accepted Answer

A) True 
 B)False

Question 13

A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year,$3,600; Freight In,$650; Purchases,$10,700; Purchases Returns and Allowances,$1,950; Purchases Discounts,$330.The cost of merchandise purchased is equal to

Accepted Answer

A)  $12,670 
B)  $9,070 
C)  $8,420 
D)  $17,230 
A)  $12,670 
B)  $9,070 
C)  $8,420 
D)  $17,230

Question 14

Cumberland Co.sells $2,000 of inventory to Hancock Co.for cash.Cumberland paid $1,250 for the merchandise.Under a perpetual inventory system,which of the following journal entry(ies)would be recorded?

Accepted Answer

A)  debit Cash,$2,000; credit Inventory,$1,250 
B)  debit Cash,$2,000; credit Sales,$2,000; and debit Cost of Goods Sold,$1,250; credit Inventory,$1,250 
C)  debit Cash,$1,250; credit Sales,$1,250 
D)  debit Accounts Receivable,$2,000; credit Sales,$2,000; and debit Cost of Goods Sold,$1,250; credit Inventory,$1,250 
A)  debit Cash,$2,000; credit Inventory,$1,250 
B)  debit Cash,$2,000; credit Sales,$2,000; and debit Cost of Goods Sold,$1,250; credit Inventory,$1,250 
C)  debit Cash,$1,250; credit Sales,$1,250 
D)  debit Accounts Receivable,$2,000; credit Sales,$2,000; and debit Cost of Goods Sold,$1,250; credit Inventory,$1,250

Question 15

Gross profit minus selling expenses equals net income.

Accepted Answer

A) True 
 B)False

Question 16

Income that cannot be associated definitely with operations,such as a gain from the sale of a fixed asset,is listed as Other Revenue on the multiple-step income statement.

Accepted Answer

A) True 
 B)False

Question 17

Pierce Company sold to Stanton Company merchandise on account FOB shipping point,2 / 10,net 30,for $20,000.Pierce prepaid the $500 shipping charge.Which of the following entries does Pierce make to record this sale?

Accepted Answer

A)  Accounts Receivable-Stanton,debit $20,000; Sales,credit $20,000 
B)  Accounts Receivable-Stanton,debit $19,600; Sales,credit $19,600,and
Accounts Receivable-Stanton,debit $500; Cash,credit $500 
C)  Accounts Receivable-Stanton,debit $20,100; Sales,credit $20,100 
D)  Accounts Receivable-Stanton,debit $20,000; Sales,credit $20,000,and
Delivery Expense,debit $500; Cash,credit $500 
A)  Accounts Receivable-Stanton,debit $20,000; Sales,credit $20,000 
B)  Accounts Receivable-Stanton,debit $19,600; Sales,credit $19,600,and
Accounts Receivable-Stanton,debit $500; Cash,credit $500 
C)  Accounts Receivable-Stanton,debit $20,100; Sales,credit $20,100 
D)  Accounts Receivable-Stanton,debit $20,000; Sales,credit $20,000,and
Delivery Expense,debit $500; Cash,credit $500

Question 18

Using a perpetual inventory system,the entry to record the sale of merchandise on account includes a

Accepted Answer

A)  debit to Sales 
B)  debit to Inventory 
C)  credit to Inventory 
D)  credit to Accounts Receivable 
A)  debit to Sales 
B)  debit to Inventory 
C)  credit to Inventory 
D)  credit to Accounts Receivable

Question 19

On the income statement in the single-step form,the total of all expenses is deducted from the total of all revenues.

Accepted Answer

A) True 
 B)False

Question 20

When goods are shipped FOB destination and the seller pays the freight charges,the buyer

Accepted Answer

A)  journalizes a reduction for the cost of the merchandise 
B)  journalizes a reimbursement to the seller 
C)  does not take a discount 
D)  makes no journal entry for the freight 
A)  journalizes a reduction for the cost of the merchandise 
B)  journalizes a reimbursement to the seller 
C)  does not take a discount 
D)  makes no journal entry for the freight

Exam 5: Accounting for Merchandising Businesses

Complete the following data taken from the condensed income statements for merchandising Companies X,Y,and Z.

Journalize the entries to record the following selected transactions:

Journalize the following transactions assuming a perpetual inventory system: ​

When the perpetual inventory system is used,the inventory sold is shown on the income statement as

Using the letter preceding each account,arrange the following selected accounts in the order they would normally appear in a chart of accounts of a company that uses a multiple-step income statement.

In recording the cost of goods sold for cash,based on data available from perpetual inventory records,the journal entry is

A seller may grant a buyer a reduction in selling price and this is called a customer discount.

A chart of accounts for a merchandising business

On March 3,Bluebird Sales makes $4,350 in cash sales of general merchandise that has a cost of $1,512.Bluebird uses a perpetual inventory system. (a)Journalize the sale. (b)Journal the cost of goods sold.

Which of the following accounts will not be found in the Cost of Goods Sold section of the income statement for a company using the periodic inventory method?

Sales to customers who use bank credit cards,such as MasterCard and VISA,are generally treated as credit sales.

A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year,$3,600; Freight In,$650; Purchases,$10,700; Purchases Returns and Allowances,$1,950; Purchases Discounts,$330.The cost of merchandise purchased is equal to

Cumberland Co.sells $2,000 of inventory to Hancock Co.for cash.Cumberland paid $1,250 for the merchandise.Under a perpetual inventory system,which of the following journal entry(ies)would be recorded?

Gross profit minus selling expenses equals net income.

Income that cannot be associated definitely with operations,such as a gain from the sale of a fixed asset,is listed as Other Revenue on the multiple-step income statement.

Pierce Company sold to Stanton Company merchandise on account FOB shipping point,2 / 10,net 30,for $20,000.Pierce prepaid the $500 shipping charge.Which of the following entries does Pierce make to record this sale?

Using a perpetual inventory system,the entry to record the sale of merchandise on account includes a

On the income statement in the single-step form,the total of all expenses is deducted from the total of all revenues.

When goods are shipped FOB destination and the seller pays the freight charges,the buyer

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing 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

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Journalize the following transactions assuming a perpetual inventory system: