Exam 5: Merchandising Operations

On November 1,2016,Everett Janitorial Supply sold merchandise with a cost of $3,200 for $5,000,FOB destination,and payment terms of 2/10,n/30.The company uses a perpetual inventory system.Give journal entries to record the sales revenue.

Anderson Furniture sold 15 desks,with a cost of $7,500,for $13,250 on account.Anderson uses the periodic inventory system.Which of the following is the correct way to record this transaction?

Which of the following is the correct journal entry for a return of goods that were purchased on account under the periodic inventory system?

Gross profit represents the mark-up on ________.

The revenue,expenses,Sales Returns and Allowances,and Sales Discounts will be closed via the ________ account.

The perpetual inventory system keeps a running record of inventory and cost of goods sold.

If a physical count of inventory indicates that the Merchandise Inventory account is overstated,an adjusting entry is required to record the difference.

Cost of goods available for sale represents beginning merchandise inventory plus net purchases less freight in.

Portian Merchandisers has purchased merchandise on account and paid $450 for freight in.Give the journal entry for freight paid.(Assume a perpetual inventory system. )

The Merchandise Inventory account is an expense account that is used for goods purchased that the business owns and intends to resell to customers,as well as for purchase of office supplies and equipment.

Up-to-date Merchandisers has the following transactions for the month of July. Calculate Gross Profit.

Which of the following is the correct journal entry for freight paid on goods purchased by a merchandiser using the periodic inventory system?

A wholesaler is a merchandiser who buys merchandise from a manufacturer and sells the same to a retailer.

Under the perpetual inventory system,what is the difference between a sales return and a sales allowance?

The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company collects cash from customers.

When preparing the worksheet for a merchandising business using the perpetual inventory system,the main new account is the Merchandise Inventory account.

Journalize the following sales transactions for Smith Printing Equipment using the periodic inventory system.Explanations are not required.

Even in a perpetual inventory system that updates the inventory account as and when transactions occur,the business must count its inventory at least once in a year.

When a merchandiser records sales returns,Accounts Receivable is credited.(Assume the seller uses the perpetual inventory system. )

Which of the following is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement?