Question : 56.Beckett Co. sold merchandise account for $10,600, terms 2/10, n/30. : 1169435

 

 

56.Beckett Co. sold merchandise on account for $10,600, terms 2/10, n/30. Freight charges of $250 were prepaid by the seller and added to the invoice. The customer returned $800 of merchandise before making the payment then paid the invoice within the discount period. What is the amount Beckett Co. received?   

A. $9,854

 

B. $9,604

 

C. $9,849

 

D. $9,833

 

 

 

57.Merchandise is sold for $8,820, terms 1/10, n/30. Prior to payment, the customer returned $560 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is:   

A. $82.60

 

B. $165.20

 

C. $88.20

 

D. $93.80

 

 

 

58.Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  A check written by Bosley Co. for $168 was mistakenly recorded in the company records as $186.   

A. Option A

 

B. Option B

 

C. Option C

 

D. Option D

 

 

 

 

59.Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  An NSF check from a customer.   

A. Option A

 

B. Option B

 

C. Option C

 

D. Option D

 

 

 

 

60.Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  A canceled check for $147 erroneously listed on bank statement as $74.   

A. Option A

 

B. Option B

 

C. Option C

 

D. Option D

 

 

 

 

61.Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  A deposit in transit.   

A. Option A

 

B. Option B

 

C. Option C

 

D. Option D

 

 

 

 

62.Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  A service charge charged by the bank.   

A. Option A

 

B. Option B

 

C. Option C

 

D. Option D

 

 

 

 

63.Of the four categories shown in the form above, which category or categories require journal entries in the firm’s records?   

A. Bank Statement Balance Additions and Bank Statement Balance Deductions

 

B. Bank Statement Balance Additions and Book Balance of Cash Additions

 

C. Bank Statement Balance Deductions and Book Balance of Cash Deductions

 

D. Book Balance of Cash Additions and Book Balance of Cash Deductions

 

 

 

 

64.The March bank reconciliation statement for Cab World, Inc., showed an NSF check of $300 from J. Brown as well as a bank service charge of $20 for monthly service fees. Select the journal entry required to record these items.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

 

 

 

65.Phones R Us uses a perpetual inventory system when recording its cash payments and cash receipts. In June, the business purchases $5,000 of goods on account with terms of 2/10, n/30. Select the correct entry to record the payment of the goods within the discount period.   

A. 

 

 

B. 

 

 

C. 

 

 

D. 

 

 

66.Hawthorne Inc. uses the perpetual inventory system when recording its cash payments and cash receipts. If the company issues a check to pay for goods purchased and they pay within the discount period, identify the account used to record the discount.   

A. purchases

 

B. purchases discounts

 

C. merchandise inventory

 

D. sales discounts

 

 

 

 

67.Valerie’s Market uses a perpetual inventory system when recording its cash payments and cash receipts. The business sells $6,000 of goods to a charge account customer with terms of 1/10, n/30. If the customer pays within the discount period, the entry to record the receipt of cash from the customer would include:   

A. a debit to Sales Discounts for $60 and a credit to Accounts Receivable for $6,000

 

B. a debit to Cash for $6,000 and a credit to Accounts Receivable for $6,000

 

C. a debit to SalesDiscounts for $600 and a credit to Accounts Receivable for $5,400

 

D. a debit to Purchase Discounts for $60 and a credit to Accounts Receivable for $5,940