Question :
145.On March 12, Klein Company, Inc. sold merchandise in the : 1258801
145.On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. Babson pays the invoice on March 17, and takes the appropriate discount. The journal entry that Klein makes on March 17 is:
A.Cash7,800
Accounts receivable7,800
B.Cash4,500
Accounts receivable4,500
C.Cash7,644
Sales discounts156
Accounts receivable7,800
D.Cash7,644
Accounts receivable7,644
E.Cash4,410
Sales discounts90
Accounts receivable4,500
Sales Discounts = $7,800 * .02 = $156Cash = $7,800 – $156 = $7,644
146.On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. The entry or entries that Klein must make on March 15 is:
A.Sales returns and allowances600
Accounts receivable600
Merchandise inventory350
Cost of goods sold350
B.Sales returns and allowances600
Accounts receivable600
C.Accounts receivable600
Sales returns and allowances600
D.Accounts receivable600
Sales returns and allowances600
Cost of goods sold350
Merchandise inventory350
E.Sales returns and allowances350
Accounts receivable350
147.On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The amount that Klein receives from Babson on March 20 is:
A.$7,800.
B.$7,644.
C.$7,044.
D.$7,056.
E.$7,200.
Accounts Receivable = $7,800 – $600 = $7,200Sales Discounts = $7,200 * .02 = $144Cash = $7,200 – $144 = $7,056
148.On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The journal entry that Klein makes on March 20 is:
A.Cash7,800
Accounts receivable7,800
B.Cash4,500
Accounts receivable4,500
C.Cash7,056
Sales discounts144
Accounts receivable7,200
D.Cash7,056
Accounts receivable7,056
E.Cash7,644
Sales discounts156
Accounts receivable7,800
Accounts Receivable = $7,800 – $600 = $7,200Sales Discounts = $7,200 * .02 = $144Cash = $7,200 – $144 = $7,056
149.Zenith Company Inc.’s Merchandise Inventory account at the end of year 2015 has a balance of $91,820, but a physical count reveals that only $90,450 of inventory exists. The adjusting entry to record this $1,370 of inventory shrinkage is:
A.Merchandise Inventory1,370
Inventory shrinkage expense1,370
B.Purchases discounts1,370
Cost of goods sold1,370
C.Cost of goods sold1,370
Merchandise Inventory1,370
D.Inventory shrinkage expense1,370
Cost of goods sold1,370
E.Cost of Goods Sold90,450
Merchandise Inventory90,450
