Question :
101. Using the following information, what the amount of net sales?
Purchases
$32,000
: 1239756
101. Using the following information, what is the amount of net sales?
Purchases
$32,000
Purchases discounts
$960
Merchandise inventorySeptember 1
5,700
Merchandise inventorySeptember 30
6,370
Sales returns andallowances
910
Sales
63,000
Purchases returns andallowances
1,200
Freight In
1,040
A. $28,970B. $63,130C. $63,000D. $62,090
102. Using the following information, what is the amount of merchandise available for sale?
Purchases
$32,000
Purchases discounts
$960
Merchandise inventorySeptember 1
5,700
Merchandise inventorySeptember 30
6,370
Sales returns andallowances
910
Sales
63,000
Purchases returns andallowances
1,200
Freight In
1,040
A. $35,540B. $36,580C. $37,700D. $34,500
103. Where are selling and administrative expenses found on the multiple-step income statement? A. before gross profitB. after sales and before gross profitC. after net income before expensesD. after gross profit
104. Dorman Co. sold merchandise to Smith Co. on account, $23,500, terms 2/15, net 45. The cost of the merchandise sold is $16,000. Dorman Co. issued a credit memo for $1,750 for merchandise returned that originally cost $1,400. The Smith Co. paid the invoice within the discount period. What is amount of net sales from the above transactions? A. $23,030B. $21,750C. $21,315D. $13,808
105. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a A. debit to SalesB. debit to Merchandise InventoryC. credit to Merchandise InventoryD. credit to Accounts Receivable
106. Which of the following accounts has a normal debit balance? A. Accounts PayableB. Sales Returns and AllowancesC. SalesD. Interest Revenue
107. Merchandise is ordered on December 1; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on December 3; the merchandise is received by the buyer on December 8; the entry is made in the buyer’s accounts on December 10. The credit period begins with what date? A. December 1B. December 3C. December 8D. December 10
108. Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a A. credit to Sales Returns and AllowancesB. debit to Merchandise InventoryC. credit to Merchandise InventoryD. debit to Cost of Merchandise Sold
109. If merchandise sold on account is returned to the seller, the seller may inform the customer of the details by issuing a A. sales invoiceB. purchase invoiceC. credit memoD. debit memo
110. The arrangements between buyer and seller as to when payments for merchandise are to be made are called A. credit termsB. net cashC. cash on demandD. gross cash