Question 1

Merchandise Inventory normally has a debit balance.

Accepted Answer

A) True 
 B)False

Question 2

Purchases of merchandise are typically credited to the merchandise inventory account under the perpetual inventory system.

Accepted Answer

A) True 
 B)False

Question 3

Merchandise with a sales price of $6,000 is sold on account with term 2/10,n/30.The journal entry to record the sale would include a

Accepted Answer

A) debit to Cash for $6,000 
B) Debit to Sales Discounts for $120 
C) Credit to Sales for $6,000 
D) Debit to Accounts Receivable for $5,880 
A) debit to Cash for $6,000 
B) Debit to Sales Discounts for $120 
C) Credit to Sales for $6,000 
D) Debit to Accounts Receivable for $5,880

Question 4

The abbreviation FOB stands for Free On Board.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

@#IMG-DLM& OR Rearranged in th

Question 6

Abbey Co.sold merchandise to Gomez Co.on account,$35,000,terms 2/15,net 45.The cost of the merchandise sold is $24,500.Abbey Co.issued a credit memo for $3,600 for merchandise returned that originally cost $1,700.Gomez Co.paid the invoice within the discount period.What is the amount of gross profit earned by Abbey Co.on the above transactions?

Accepted Answer

A) 10,500 
B) 30,772 
C) 7,972 
D) 31,400 
A) 10,500 
B) 30,772 
C) 7,972 
D) 31,400

Question 7

If the seller is to pay the freight costs of delivering merchandise,the delivery terms are stated as

Accepted Answer

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

Question 8

A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called cash discounts.

Accepted Answer

A) True 
 B)False

Question 9

Under the periodic inventory system,the cost of merchandise sold is equal to the beginning merchandise inventory plus the cost of merchandise purchased plus the ending merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Merchandise with a list price of $4,200 and costing $2,300 is sold on account,subject to the following terms: FOB destination,2/10,n/30.The seller prepays the freight costs of $85 (debit Freight Out for the freight costs).Prior to payment for the goods,the seller issues a credit memo for $750 to the customer for merchandise costing $425 that is returned.The correct amount is received within the discount period.The company uses a perpetual inventory system.
Record the foregoing transactions of the seller in the sequence indicated below.

Accepted Answer

The answer of Merchandise with a list price of $4,200...

Question 12

In a perpetual inventory system,merchandise returned to vendors reduces the merchandise inventory account.

Accepted Answer

A) True 
 B)False

Question 13

Selected data from the ledger of Morrison Co.after adjustment at September 30,2011 the end of the fiscal year,are listed as follows:
   
Prepare an income statement,using the single-step form,and a statement of owner's equity.

Accepted Answer

The answer of Selected data from the ledger of Morrison...

Question 14

When purchases of merchandise are made for cash,the transaction may be recorded with the following entry

Accepted Answer

A) debit Cash;credit Merchandise Inventory 
B) debit Merchandise Inventory;credit Cash 
C) debit Merchandise Inventory;credit Cash Discounts 
D) debit Merchandise Inventory;credit Purchases 
A) debit Cash;credit Merchandise Inventory 
B) debit Merchandise Inventory;credit Cash 
C) debit Merchandise Inventory;credit Cash Discounts 
D) debit Merchandise Inventory;credit Purchases

Question 15

The following data for the current year ended June 30 were extracted from the accounting records of Excel Co.:
   
Prepare a multiple-step income statement for the year ended June 30,2014.

Accepted Answer

The answer of The following data for the current year...

Question 16

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 17

Journalize the following transactions assuming a perpetual inventory system.:
   
Journal

Accepted Answer

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

Question 18

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

Accepted Answer

A) debit to Bank Credit Card Sales,debit to Credit Card Expense,and a credit to Sales 
B) debit to Cash and a credit to Sales 
C) debit to Cash,credit to Credit Card Expense,and a credit to Sales 
D) debit to Sales,debit to Credit Card Expense,and a credit to Cash 
A) debit to Bank Credit Card Sales,debit to Credit Card Expense,and a credit to Sales 
B) debit to Cash and a credit to Sales 
C) debit to Cash,credit to Credit Card Expense,and a credit to Sales 
D) debit to Sales,debit to Credit Card Expense,and a credit to Cash

Question 19

Merchandise with an invoice price of $3,000 is purchased on September 2 subject to terms of 2/10,n/30,FOB destination.Freight costs paid by the seller totaled $200.What is the cost of the merchandise if paid on September 12,assuming the discount is taken?

Accepted Answer

A) $3,140 
B) $3,136 
C) $2,744 
D) $2,940 
A) $3,140 
B) $3,136 
C) $2,744 
D) $2,940

Question 20

Who pays the freight costs when the terms are FOB shipping point?

Accepted Answer

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

Merchandise Inventory normally has a debit balance.

Purchases of merchandise are typically credited to the merchandise inventory account under the perpetual inventory system.

Merchandise with a sales price of $6,000 is sold on account with term 2/10,n/30.The journal entry to record the sale would include a

The abbreviation FOB stands for Free On Board.

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

If the seller is to pay the freight costs of delivering merchandise,the delivery terms are stated as

A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called cash discounts.

Under the periodic inventory system,the cost of merchandise sold is equal to the beginning merchandise inventory plus the cost of merchandise purchased plus the ending merchandise inventory.

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

In a perpetual inventory system,merchandise returned to vendors reduces the merchandise inventory account.

Selected data from the ledger of Morrison Co.after adjustment at September 30,2011 the end of the fiscal year,are listed as follows: Prepare an income statement,using the single-step form,and a statement of owner's equity.

When purchases of merchandise are made for cash,the transaction may be recorded with the following entry

The following data for the current year ended June 30 were extracted from the accounting records of Excel Co.: Prepare a multiple-step income statement for the year ended June 30,2014.

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

Journalize the following transactions assuming a perpetual inventory system.: Journal

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

Merchandise with an invoice price of $3,000 is purchased on September 2 subject to terms of 2/10,n/30,FOB destination.Freight costs paid by the seller totaled $200.What is the cost of the merchandise if paid on September 12,assuming the discount is taken?

Who pays the freight costs when the terms are FOB shipping point?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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 5: Accounting for Merchandising Businesses

Merchandise Inventory normally has a debit balance.

Purchases of merchandise are typically credited to the merchandise inventory account under the perpetual inventory system.

Merchandise with a sales price of $6,000 is sold on account with term 2/10,n/30.The journal entry to record the sale would include a

The abbreviation FOB stands for Free On Board.

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

If the seller is to pay the freight costs of delivering merchandise,the delivery terms are stated as

A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called cash discounts.

Under the periodic inventory system,the cost of merchandise sold is equal to the beginning merchandise inventory plus the cost of merchandise purchased plus the ending merchandise inventory.

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

In a perpetual inventory system,merchandise returned to vendors reduces the merchandise inventory account.

Selected data from the ledger of Morrison Co.after adjustment at September 30,2011 the end of the fiscal year,are listed as follows: Prepare an income statement,using the single-step form,and a statement of owner's equity.

When purchases of merchandise are made for cash,the transaction may be recorded with the following entry

The following data for the current year ended June 30 were extracted from the accounting records of Excel Co.: Prepare a multiple-step income statement for the year ended June 30,2014.

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

Journalize the following transactions assuming a perpetual inventory system.: Journal

Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a

Merchandise with an invoice price of $3,000 is purchased on September 2 subject to terms of 2/10,n/30,FOB destination.Freight costs paid by the seller totaled $200.What is the cost of the merchandise if paid on September 12,assuming the discount is taken?

Who pays the freight costs when the terms are FOB shipping point?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

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