Question :
126.A company has net sales of $752,000 and cost of : 1258799
126.A company has net sales of $752,000 and cost of goods sold of $543,000. Its net income is $17,530. The company’s gross margin and operating expenses, respectively, are:
A.$209,000 and $191,470
B.$191,470 and $209,000
C.$525,470 and $227,000
D.$227,000 and $525,470
E.$734,000 and $191,470
Gross Margin = Net Sales – Cost of Goods Sold; $752,000 – $543,000 = $209,000Operating Expenses = Gross Margin – Net Income; $209,000 – $17,530 = $191,470
127.Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?
A.Merchandise Inventory
B.Sales
C.Sales Returns and Allowances
D.Accounts Payable
E.Purchases
128.When preparing an unadjusted trial balance using a periodic inventory system, the amount shown for Merchandise Inventory is:
A.The ending inventory amount.
B.The beginning inventory amount.
C.Equal to the cost of goods sold.
D.Equal to the cost of goods purchased.
E.Equal to the gross profit.
129.On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. The journal entry or entries that Vander will make on September 12 is:
A.Sales5,800
Accounts receivable5,800
B.Sales5,800
Accounts receivable5,800
Cost of goods sold4,000
Merchandise Inventory4,000
C.Accounts receivable5,800
Sales5,800
D.Accounts receivable5,800
Sales5,800
Cost of goods sold4,000
Merchandise inventory4,000
E.Accounts receivable4,000
Sales4,000
130.On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
A.Cash5,800
Accounts receivable5,800
B.Cash4,000
Accounts receivable4,000
C.Cash3,920
Sales discounts80
Accounts receivable4,000
D.Cash5,684
Accounts receivable5,684
E.Cash5,684
Sales discounts116
Accounts receivable5,800
Sales Discounts = $5,800 * .02 = $116Cash = $5,800 – $116 = $5,684
131.On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. On September 14, Jepson returns some of the merchandise. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Vander must make on September 14 is:
A.Sales returns and allowances500
Accounts receivable500
Merchandise inventory350
Cost of goods sold350
B.Sales returns and allowances500
Accounts receivable500
C.Accounts receivable500
Sales returns and allowances500
D.Accounts receivable500
Sales returns and allowances500
Cost of goods sold350
Merchandise inventory350
E.Sales returns and allowances350
Accounts receivable350
132.On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
A.Cash5,800
Accounts receivable5,800
B.Cash4,000
Accounts receivable4,000
C.Cash5,194
Sales discounts106
Accounts receivable5,300
D.Cash5,684
Accounts receivable5,684
E.Cash5,684
Sales discounts116
Accounts receivable5,800
Accounts Receivable = $5,800 – $500 = $5,300Sales Discounts = $5,300 * .02 = $106Cash = $5,300 – $106 = $5,194
133.Cushman Company, Inc. had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals:
A.$150,000.
B.$450,000.
C.$800,000.
D.$350,000.
E.$200,000.
Cost of Goods Sold = Net Sales – Gross Profit; $800,000 – $350,000 = $450,000
134.Cushman Company, Inc. had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:
A.$770,000.
B.$115,000.
C.$390,000.
D.$402,000.
E.$408,000.
Gross Profit (Margin) = $800,000 – $12,000 – $18,000 – $380,000 = $390,000
135.Cushman Company, Inc. had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals:
A.$770,000.
B.$402,000.
C.$390,000.
D.$115,000.
E.$408,000.
Net Income = $800,000 – $12,000 – $18,000 – $380,000 – $275,000 = $115,000
