Question : 106. Sales less sales discounts less sales returns and allowances equals: A. Net : 1257876

 

106. Sales less sales discounts less sales returns and allowances equals: A. Net purchases.B. Cost of goods sold.C. Net sales.D. Gross profit.E. Net income.

107. Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Garza Company’s net sales equals: A. $5,200.B. $129,800.C. $133,000.D. $135,000.E. $140,200.

108. On May 1, Shilling Company, Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will make on May 1 is: 

A.

Sales……………………….

5,800

 

 

Accounts receivable…………..

 

5,800

B.

Sales……………………….

5,800

 

 

Accounts receivable…………..

 

5,800

 

Cost of goods sold……………….

4,000

 

 

Merchandise Inventory…………

 

4,000

C.

Accounts receivable………………

5,800

 

 

Sales……………………

 

5,800

D. 

Accounts receivable………………

5,800

 

 

Sales……………………

 

5,800

 

Cost of goods sold……………….

4,000

 

 

Merchandise inventory…………

 

4,000

E.

Accounts receivable………………

4,000

 

 

Sales……………………

 

4,000

 

109. On May 1, Anders Company, Inc. purchased merchandise in the amount of $5,800 from Shilling, with credit terms of 2/10, n/30. Anders uses the perpetual inventory system. The journal entry or entries that Anders will make on May 1 is: 

A.

Sales……………………….

5,800

 

 

Accounts receivable…………..

 

5,800

B.

Merchandise Inventory……………

5,800

 

 

Accounts payable…………….

 

5,800

C.

Accounts payable……………….

5,800

 

 

Sales……………………

 

5,800

D. 

Merchandise inventory……………

5,800

 

 

Cash…………………….

 

5,800

E.

Purchases……………………

5,800

 

 

Accounts Payable…………….

 

5,800

 

110. On February 3, Smart Company, Inc. sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: 

A.

Cash……………………….

5,800

 

 

Accounts receivable…………..

 

5,800

 

B.

Cash……………………….

4,000

 

 

Accounts receivable…………..

 

4,000

 

C.

Cash

3,920

 

 

Sales discounts…………………

     80

 

 

Accounts receivable…………..

 

4,000

 

D.

Cash

5,684

 

 

Accounts receivable…………..

 

5,684

 

E. 

Cash

5,684

 

 

Sales discounts…………………

   116

 

 

Accounts receivable…………..

 

5,800

 

111. On July 1, Ferguson Company, Inc. sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July5 is:  

A. 

Sales returns and allowances…………

500

 

 

Accounts receivable…………..

 

500

 

Merchandise inventory…………….

350

 

 

Cost of goods sold……………

 

350

B.

Sales returns and allowances…………

500

 

 

Accounts receivable…………..

 

500

C.

Accounts receivable………………

500

 

 

Sales returns and allowances……..

 

500

D.

Accounts receivable………………

500

 

 

Sales returns and allowances……..

 

500

 

Cost of goods sold……………….

350

 

 

Merchandise inventory…………

 

350

E.

Sales returns and allowances…………

350

 

 

Accounts receivable…………..

 

350

 

112. Juniper Company, Inc.uses a  inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals: A. $8,167.50.B. $9,652.50.C. $9,750.00.D. $8,250.00.E. $8,152.50.

 

113. Juniper Company, Inc.uses a  inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The amount of the cash paid on August 26 equals: A. $8,167.50B. $9,652.50.C. $9,750.00.D. $8,250.00.E. $8,152.50.

 

114. Juniper Company, Inc. uses a  inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is: A. Debit Merchandise Inventory $9,750; credit Cash $9,750.B. Debit Accounts Payable $9,750; credit Merchandise Inventory $9,750.C. Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250.D. Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750.E. Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.

 

115. Juniper Company, Inc. uses a  inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The correct journal entry to record the merchandise return on August 11 is: A. Debit Accounts Payable $1,500; credit Cash $1,500.B. Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500.C. Debit Merchandise Inventory $1,500; credit Sales Returns $1,500.D. Debit Merchandise Inventory $1,500; credit Cash $1,500.E. Debit Accounts Payable $1,500; credit Purchase Returns $1,500.