Ask Question, Ask an Expert

+61-413 786 465

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

Corporate accounting assignment -assessment task -select

Corporate Accounting Assignment - Assessment task - Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then ...

Assignment -part a -background saturn petcare australia and

Assignment - Part A - Background: Saturn Petcare Australia and New Zealand is Australia's largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since openin ...

Case study - the athletes storerequiredonce you have read

Case Study - The Athletes Store Required: Once you have read through the assignment complete the following tasks in order and produce the following reports Part 1 i. Enter the business information including name, address ...

Question 1 an organization owes pound300000 tax at 17x4 and

Question 1 . An organization owes £300,000 tax at 1.7.X4 and £450,000 at 30.6.X5. Its income statement for the year to 30.6.X5 includes a tax charge of £400,000. How much tax was actually paid in the year to 30.6.X5?

At the start of 2013 shasta corporation has 15000

At the start of 2013, Shasta Corporation has 15,000 outstanding shares of preferred stock, each with a $60 par value and a cumulative 7% annual dividend. The company also has 28,000 shares of common stock outstanding wit ...

Listed below are selected account balances for pinnacle

Listed below are selected account balances for Pinnacle Corporation at December 31, Year 1 and Year 2.  Also available for you is selected information from the income statement for Pinnacle for the year ended December 31 ...

Supply and demand graphto complete this assignment address

Supply and Demand Graph To complete this assignment, address the following requests: 1. Based on the information from the US Energy Information Administration, create the supply and demand graph in the space below. This ...

Can you please help me with thishow do restrictions affect

Can you please help me with this. How do restrictions affect net assets in Not- For -Profit organization or health care?

Assignment - problem questionsthis assessment task consists

Assignment - Problem questions This assessment task consists of five (5) questions. All workings, when appropriate, must be shown to substantiate your answers. Question 1 - Financial statement disclosures You are the fin ...

Ha 3011 advanced financial accounting assignment

HA 3011 Advanced Financial Accounting Assignment - Assessment Task Part A - In an article entitled 'Unwieldy rules useless for investors' that appeared in the Australian Financial Review on 6 February 2012 (by Agnes King ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As