Question 1

The entry to record the return of merchandise from a customer would include a

Accepted Answer

A)  debit to Sales 
B)  credit to Sales 
C)  debit to Sales Returns and Allowances 
D)  credit to Sales returns and Allowances 
A)  debit to Sales 
B)  credit to Sales 
C)  debit to Sales Returns and Allowances 
D)  credit to Sales returns and Allowances

Question 2

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shortage?

Accepted Answer

A)  Merchandise inventory debit $158,000; Cost of Merchandise Sold credit $158,000. 
B)  Merchandise inventory debit $5,000; Cost of Merchandise Sold credit $5,000. 
C)  Cost of Merchandise Sold debit $163,000; Merchandise Inventory credit $158,000. 
D)  Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000. 
A)  Merchandise inventory debit $158,000; Cost of Merchandise Sold credit $158,000. 
B)  Merchandise inventory debit $5,000; Cost of Merchandise Sold credit $5,000. 
C)  Cost of Merchandise Sold debit $163,000; Merchandise Inventory credit $158,000. 
D)  Cost of Merchandise Sold debit $5,000; Merchandise Inventory credit $5,000.

Question 3

The primary difference between a periodic and perpetual inventory system is that a

Accepted Answer

A)  periodic system determines the inventory on hand only at the end of the accounting period 
B)  periodic system keeps a record showing the inventory on hand at all times 
C)  periodic system provides an easy means to determine inventory shrinkage 
D)  periodic system records the cost of the sale on the date the sale is made 
A)  periodic system determines the inventory on hand only at the end of the accounting period 
B)  periodic system keeps a record showing the inventory on hand at all times 
C)  periodic system provides an easy means to determine inventory shrinkage 
D)  periodic system records the cost of the sale on the date the sale is made

Question 4

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

Accepted Answer

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Question 5

During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of the merchandise sold is $157,400. What is the amount of the gross profit?

Accepted Answer

$201,850 (

Question 6

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Accepted Answer

The answer of Determine the amount to be paid in...

Question 7

Under a periodic inventory system, the merchandise on hand at the end of the year is determined by a physical count of the inventory.

Accepted Answer

A) True 
 B)False

Question 8

Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. If payment is made within 10 days of the purchase, the entry to record the payment will include a credit to Cash and a credit to Purchase Discounts.

Accepted Answer

A) True 
 B)False

Question 9

On March 25, 2014, Patton Company sold merchandise on account,$10,000. The applicable sales tax percentage is 8.5%. Record the transaction.

Accepted Answer

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Question 10

Marshall Supplies is a janitorial supply store. Marshall Supplies uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of July:

Accepted Answer

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Question 11

Merchandise is sold for cash. The selling price of the merchandise is $5,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include

Accepted Answer

A)  A credit to Cash for $5,000. 
B)  A credit to Sales for $5,350. 
C)  A credit to Sales Tax Payable for $350. 
D)  None of these answers are correct. 
A)  A credit to Cash for $5,000. 
B)  A credit to Sales for $5,350. 
C)  A credit to Sales Tax Payable for $350. 
D)  None of these answers are correct.

Question 12

When the terms of sale are FOB shipping point, the buyer should pay the freight charges.

Accepted Answer

A) True 
 B)False

Question 13

If merchandise costing $3,500, terms FOB destination, 2/10, n/30, with prepaid freight costs of $125, is paid within 10 days, the amount of the purchases discount is $70.

Accepted Answer

A) True 
 B)False

Question 14

If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the general ledger.

Accepted Answer

A) True 
 B)False

Question 15

Which account is not classified as a selling expense?

Accepted Answer

A)  Sales Salaries 
B)  Freight-Out 
C)  Freight-In 
D)  Advertising Expense 
A)  Sales Salaries 
B)  Freight-Out 
C)  Freight-In 
D)  Advertising Expense

Question 16

Match between columns
                        Premises: Sales Discounts
Merchandise Inventory
Sales
Purchases Discounts
 Cost of Merchandise Sold
Freight In
Delivery Expense
Sales Returns and Allowances

Accepted Answer

The Answer of periodic inventory system and perpetual inventory system is...

Question 17

Inventory shortage is recorded when

Accepted Answer

A)  merchandise is returned by a buyer. 
B)  merchandise purchased from a seller is incomplete or short. 
C)  merchandise is returned to a seller. 
D)  there is a difference between a physical count of inventory and inventory records. 
A)  merchandise is returned by a buyer. 
B)  merchandise purchased from a seller is incomplete or short. 
C)  merchandise is returned to a seller. 
D)  there is a difference between a physical count of inventory and inventory records.

Question 18

Service businesses provide services for income, while a merchandising business sells merchandise.

Accepted Answer

A) True 
 B)False

The entry to record the return of merchandise from a customer would include a

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shortage?

The primary difference between a periodic and perpetual inventory system is that a

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

During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of the merchandise sold is $157,400. What is the amount of the gross profit?

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Under a periodic inventory system, the merchandise on hand at the end of the year is determined by a physical count of the inventory.

Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. If payment is made within 10 days of the purchase, the entry to record the payment will include a credit to Cash and a credit to Purchase Discounts.

On March 25, 2014, Patton Company sold merchandise on account,$10,000. The applicable sales tax percentage is 8.5%. Record the transaction.

Marshall Supplies is a janitorial supply store. Marshall Supplies uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of July:

Merchandise is sold for cash. The selling price of the merchandise is $5,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include

When the terms of sale are FOB shipping point, the buyer should pay the freight charges.

If merchandise costing $3,500, terms FOB destination, 2/10, n/30, with prepaid freight costs of $125, is paid within 10 days, the amount of the purchases discount is $70.

If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the general ledger.

Which account is not classified as a selling expense?

Inventory shortage is recorded when

Service businesses provide services for income, while a merchandising business sells merchandise.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 6: Accounting for Merchandising Businesses

The entry to record the return of merchandise from a customer would include a

If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported $163,000, what would be the necessary adjusting entry to record inventory shortage?

The primary difference between a periodic and perpetual inventory system is that a

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

During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of the merchandise sold is $157,400. What is the amount of the gross profit?

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

Under a periodic inventory system, the merchandise on hand at the end of the year is determined by a physical count of the inventory.

Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. If payment is made within 10 days of the purchase, the entry to record the payment will include a credit to Cash and a credit to Purchase Discounts.

On March 25, 2014, Patton Company sold merchandise on account,$10,000. The applicable sales tax percentage is 8.5%. Record the transaction.

Marshall Supplies is a janitorial supply store. Marshall Supplies uses perpetual inventory. Use a General Journal to journalize the following four transactions during the month of July:

Merchandise is sold for cash. The selling price of the merchandise is $5,000 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include

When the terms of sale are FOB shipping point, the buyer should pay the freight charges.

If merchandise costing $3,500, terms FOB destination, 2/10, n/30, with prepaid freight costs of $125, is paid within 10 days, the amount of the purchases discount is $70.

If the perpetual inventory system is used, an account entitled Cost of Merchandise Sold is included in the general ledger.

Which account is not classified as a selling expense?

Inventory shortage is recorded when

Service businesses provide services for income, while a merchandising business sells merchandise.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters