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

Assignmentthe assignment requires the use of the

Assignment The assignment requires the use of the Library/Internet research to locate and study written articles on any topics on financial accounting that was covered in the class. The student is required to critique, a ...

Assignmentscenario for assignments 1-5for assignments 1-5

Assignment Scenario for Assignments 1-5 For Assignments 1-5, you are the new budgeting and finance administrator for your local government agency. Your first responsibility is to become familiar with the agency, the budg ...

One of the auditorrsquos roles is to verify inventory

One of the auditor’s roles is to verify inventory values. The auditor would have to verify both the quantity on hand and the unit cost to determine the inventory value. How would the auditor verify the quantity?

Assignment intermediate accounting for finance working

Assignment: Intermediate Accounting for Finance Working Capital Case Study Your job is to make ABC cash flow in years 2 and 3 (positive ending cash balances); which means you must balance ABC's cash conversion cycle days ...

In chapter 4 we discussed the six sigma methodology for

In chapter 4 we discussed the six sigma methodology for process improvement (DMAIC). Give an example of how this process could be used to structure a spend analysis effort.

Assignmentwill beck ron beck and barb beck formed the bbb

Assignment Will Beck, Ron Beck, and Barb Beck formed the BBB Partnership by making capital contribution of $183,750, $131,250 and $210,000, respectively. They predict annual partnership net income of $225,000 and are con ...

Problem q 1on july 1 2014 linked up inc acquired a new

Problem: Q 1 On July 1, 2014 Linked Up Inc. acquired a new machine at a cost of $15,000 with a residual value of $3,000. The estimated useful life is 5 years and 100,000 units. For the year ending June 30, 2015 the machi ...

Problem 1on january 1 2010 branson designers issued 900

Problem 1 On January 1, 2010, Branson Designers issued $900 Million of its 8% bonds $836 million. The bonds were then prices to yield 10%. The interest will be payable on June 30 and December 31. Branson records interest ...

Assignmentaug 1 purchased merchandise from arotek company

Assignment Aug. 1 Purchased merchandise from Arotek Company for $9,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 4 At Arotek's request, Sheng paid $360 cash for freight charges on the Aug ...

Assignmentcity bank has several departments that occupy

Assignment City Bank has several departments that occupy both floors of a two-story building. The depart mental accounting system has a single account, Building Occupancy Cost, in its ledger. The types and amounts of occ ...

  • 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