Question : 98.Under the perpetual inventory system, in addition to making the : 1244372

98.Under the perpetual inventory system, in addition to making the entry to record a sale, a company would

 

a.

make no additional entry until the end of the period.

b.

record a credit to Inventory and a debit to Cost of Goods Sold for the cost of the merchandise sold.

c.

record a debit to Inventory corresponding to the amount of the sale.

d.

record a debit to Inventory corresponding to the cost of the inventory.

 

 

 

99.The entry to record a sales return from a customer would require a

 

a.

credit to Sales.

b.

debit to Sales.

c.

credit to Sales Returns and Allowances.

d.

debit to Sales Returns and Allowances.

 

 

 

100.Under the perpetual inventory system, the entry to record a purchase return would include an entry to which account?

 

a.

Merchandise Inventory

b.

Purchases Returns and Allowances

c.

Accounts Payable

d.

Sales

 

 

 

101.Under the perpetual inventory system, in addition to making the entry to record a sales return, a company would

 

a.

debit Merchandise Inventory and credit Cost of Goods Sold.

b.

debit Cost of Goods Sold and credit Merchandise Inventory.

c.

make no additional entry until the end of the period.

d.

debit Cost of Goods Sold and credit Purchases.

 

 

 

102.Under the perpetual inventory system, two entries (or one compound entry of two debits and two credits) are required for all of the following transactions, except

 

a.

the return of goods from a customer for credit.

b.

the sale of goods on credit.

c.

the purchase of goods on credit.

d.

the sale of goods for cash.

 

 

 

103.Under the perpetual inventory system, which of the following accounts would not be used?

 

a.

Cost of Goods Sold

b.

Purchases Returns and Allowances

c.

Accounts Receivable

d.

Sales

 

 

 

104.Under the perpetual inventory system, when a customer returns goods for credit, the merchandiser would make two entries, one of which would be a debit to

 

a.

Cost of Goods Sold and a credit to Merchandise Inventory.

b.

Purchases and a credit to Accounts Payable.

c.

Merchandise Inventory and a credit to Cost of Goods Sold.

d.

Accounts Receivable and a credit to Sales Returns and Allowances.

 

 

 

105.Under the perpetual inventory system, when a merchandiser returns goods to its supplier for credit, the merchandiser would debit

 

a.

Accounts Payable and credit Purchases.

b.

Merchandise Inventory and credit Accounts Payable.

c.

Cost of Goods Sold and credit Accounts Receivable.

d.

Accounts Payable and credit Merchandise Inventory.

 

 

 

106.The amount of the cost of goods available for sale during the year depends on the amounts of

 

a.

beginning merchandise inventory and cost of goods sold.

b.

beginning merchandise inventory, net cost of purchases, and ending merchandise inventory.

c.

beginning merchandise inventory and net cost of purchases.

d.

beginning merchandise inventory, cost of goods sold, and ending merchandise inventory.

 

 

 

107.Assuming that net cost of purchases was $42,500 during the year and that ending merchandise inventory was $1,000 less than the beginning merchandise inventory of $12,500, how much was cost of goods sold?

 

a.

$54,000

b.

$43,500

c.

$31,000

d.

$56,000