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

If it costs 152 per unit to produce susi and the msrp is

If it costs $152 per unit to produce SUSI, and the MSRP is $360, what is Company U’s per unit contribution margin in each of the three channels of distribution? Show your work. Assume that the brand manager forecasts upc ...

The sales budget for modesto corp shows that 21500 units of

The sales budget for Modesto Corp. shows that 21,500 units of Product A and 23,500 units of Product B are going to be sold for prices of $11.50 and $13.50, respectively. The desired ending inventory of Product A is 10% h ...

Scenario reginald owens owns knightrsquos table party

Scenario: Reginald Owens owns Knight’s Table Party Supply which caters to weddings, receptions, corporate gatherings, and other special occasions. Reginald creates the atmosphere for the occasion and decorates in conjunc ...

Financial accounting amp reporting assignment-outcome

Financial Accounting & Reporting Assignment- Outcome: Develop information gathering (research) and communication strategies to enable the provision of professional advice to a client.  Objective: The objective of this as ...

Problem - auctions amp reserve pricesplease consider the

Problem - Auctions & Reserve Prices Please consider the following auction problem You have a single unit of an indivisible good to sell. You have two potential buyers, and decide to auction the good. You do not know the ...

Ross has decided that he wants to build enough retirement

Ross has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $3,000 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 ye ...

Donnelly consulting is considering raising additional

Donnelly Consulting is considering raising additional capital. Donnelly plans to raise the capital by issuing $1,100,000 of 7%, six−year bonds on January 1, 2017. The bonds pay interest semiannually on June 30 and Decemb ...

William sold section 1245 property for 25000 in 2015 the

William sold Section 1245 property for $25,000 in 2015. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000. If an amount is zero, enter "0". a. Calculate the ...

Ocean division currently earns 830000 and has divisional

Ocean Division currently earns $830,000 and has divisional assets of $4.4 million. The division manager is considering the acquisition of a new asset that will add to profit. The investment has a cost of $680,000 and wil ...

In variable costing fixed manufacturing overhead is

In variable? costing, fixed manufacturing overhead is considered a period cost because? ________. A. these costs are indirectly related to production B. these are not incurred in the period in which the units are produce ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate