Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem 1: The difference between net sales and cost of merchandise sold for a merchandising business is:                          

i) Sales.                           
ii) Net Sales.   
iii) Gross Profit.           
iv) Gross Sales.

problem 2: When purchases of merchandise are made on account then the transaction would be recorded with the given entry:

i) Debit Accounts Payable, credit Merchandise Inventory.                   
ii) Debit Merchandise Inventory, credit Accounts Payable.                   
iii) Debit Merchandise Inventory, credit Cash    .                       
iv) Debit Cash, credit Merchandise Inventory.

problem 3: When a corporation sells merchandise and the terms are FOB shipping point and pays the shipping costs then the seller would record the transportation costs with the given entry:

i) Debit Cash, credit Accounts Receivable.                   
ii) Debit Accounts Receivable, credit Cash.               
iii) Debit Accounts Receivable, credit Sales.                   
iv) Debit Merchandise Inventory, credit Accounts Payable.

problem 4: Which of the given would be reported on the retained earnings statement for the present year?                                   
i) Dividends for the current year.                   
ii) Sales.
iii) Cost of merchandise sold.           
iv) Merchandise inventory.

problem 5: The sales invoice comprised the given information: merchandise price, P12,000; transportation, P500; terms 2/10, n/eom, FOB shipping point. Supposing that a credit for merchandise returned of P600 is granted prior to payment, that the transportation is prepaid via the seller, and that the invoice is paid in the discount period, what is the amount of cash received by the seller?

i) 11,662                               
ii) 11,672
iii) 12,250                   
iv) 11,172

problem 6: Merchandise with an invoice price of P7,000 is purchased with terms of 2/10, n/30, FOB shipping point. Transportation costs paid through the seller were P125. Determine the cost of the merchandise purchased if payment is made throughout the discount period?

i) 6,860.00                               
ii) 6,982.50   
iii) 7,000.00               
iv) 6,985.00

problem 7: Cost of Merchandise Sold would be categorized as what type of account?

i) Asset                                   
ii) Expense   
iii) Liability           
iv) Revenue

problem 8: Discount terms 2/10, n/30 mean that a 10% cash discount is available if payment is made in 30 days.                                   
i) True                                   
ii) False

problem 9: Sales Returns and Allowances is a contra-revenue account.

i) True                                   
ii) False

problem 10: Ownership of the merchandise passes to the buyer whenever the merchandise is delivered to the shipper under F.O.B. Destination.

i) True                                   
ii) False

problem 11: When credit terms of 1/10, n/30 are offered, the discount period is:

i) 1 day.                               
ii) 10 days.   
iii) 20 days.               
iv) 30 days.

problem 12: Freight costs incurred through the seller are recorded in the:

i) Sales account.                       
ii) Cost of merchandise sold account.
iii) Transportation In account    .       
iv) Transportation Out account.

problem 13: Which of the given would be categorized in an income statement as Other Income or Other Expense?

i) Transportation Out.                   
ii) Advertising Expense.               
iii) Cost of merchandise sold.               
iv) Interest Expense.

problem 14: The sales discount is based on:

i) Invoice price plus transportation costs.                           
ii) Invoice price less discount.                               
iii) Invoice price plus transportation costs less returns and allowances.           
iv) Invoice price less returns and allowances

problem 15: MAyAr and Company sold P1,800 of merchandise on account to Oscar, Inc. on March 1 with credit terms of 2/10, n/30. Oscar returned P500 of the merchandise due to poor quality on March 3. If Oscar pays for the purchase on March 11, what entry does Myers make to record receipt of the payment?

i) Debit Cash, 1,764; credit A/R, 1,764.                       
ii) Debit Cash, 1,800; credit Sales Returns and allowances, 500; credit A/R, 1,300.       
iii) Debit Cash, 1,274; debit Sales Discounts 26; credit A/R, 1,300.               
iv) Debit Cash, 1,800; credit Sales Discounts 36; credit A/R, 1,764.                       

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9479

Have any Question? 


Related Questions in Financial Accounting

Tracy company a manufacturer of air conditioners sold 100

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2011. The units have a list price of $500 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/ ...

Assessmentbullfor this assessment complete the problem

Assessment • For this assessment, complete the problem below. You may use Word or Excel to complete the assessments throughout this course, but you will find Excel to be most helpful for creating spreadsheets. Tutorials ...

Truefalse1 a distribution from a corporation will be

True/False 1 A distribution from a corporation will be taxable to the recipient shareholders only to the extent of the corporation's E & P. 2 All distributions that are not dividends are a return of capital and decrease ...

You may have to start with a free trial with a credit card

You may have to start with a free trial with a credit card and cancel directly after this module submission. Once QuickBooksTM is loaded, you may have to reboot your computer. Setting up company: Go to Home page, select ...

Territory account management calculating sales compensation

Territory Account Management Calculating Sales Compensation In problems 1 – 4, compute both the commission and the total pay based on the information given. 1. Salary, $3,000; commission rate, 6%, total sales, $58,000; r ...

John rogers has been hired by a condominium association to

John Rogers has been hired by a condominium association to take over its management. The previous management company had written the contract so that it would be paid a percentage of the unit owner’s monthly common area ...

Assignmentyou will be analyzing three different

Assignment You will be analyzing three different hypothetical cases. Please answer the questions for each case in complete sentences, with proper spelling, grammar and punctuation. Each answer should be at least 3-4 para ...

1-balance sheet computationsbalance sheet presented below

1-Balance sheet computations. (Balance Sheet) Presented below is the trial balance of Hightower Corporation at December 31, 2017.   Debit Credit Cash 295,000   Sales Revenue   $12,150 Debt Investments (trading) (at cost, ...

Assignmentcomprehensive receivables problem connecticut inc

Assignment (Comprehensive Receivables Problem) Connecticut Inc. had the following long-term receivable account balances at December 31, 2006. Note receivable from sale of division $1,800,000 Note receivable from officer ...

Discussionanswer in 2-3 paragraphs and use

DISCUSSION ANSWER IN 2-3 PARAGRAPHS AND USE SCHOLARLY SOURCE(S) First, search the internet for the official website of your local city government. If you cannot find your city, select your state. After reviewing this web ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro