Question :
33. Bonita Industries purchased $5,000 of merchandise account for resale : 1369963
33. Bonita Industries purchased $5,000 of merchandise on account for resale purposes. Bonita plans to sell the merchandise for $7,500. If Bonita returned $1,000 of merchandise for credit, the journal entry to record the return would include a:
A)debit to Accounts Payable for $1,000
B)credit to Inventory for $1,500
C)debit to Sales for $1,500
D)credit to Cash for $1,000
34. In a perpetual inventory system, the journal entry to record the purchase of merchandise on account includes a:
A)credit to Cash
B)debit to Purchases
C)debit to Inventory
D)credit to Accounts Receivable
35. In a perpetual inventory system, if the terms of sale are FOB shipping point the journal entry to record the payment of freight charges on purchased merchandise includes a:
A)debit to Inventory
B)credit to Freight Out
C)credit to Accounts Payable
D)debit to Cost of Goods Sold
36. In a perpetual inventory system, the journal entry to record the sale of merchandise on account would include a:
A)debit to Cost of Goods Sold
B)credit to Accounts Payable
C)debit to Inventory
D)credit to Cash
37. In a periodic inventory system, the journal entry to record the sale of merchandise on account would include a:
A)debit to Cost of Goods Sold
B)credit to Accounts Payable
C)debit to Inventory
D)no entry involving Inventory or Cost of Goods Sold
38. In a perpetual inventory system that uses the gross method which of the following is true?
A) When a discount is taken the Purchase Discount account is credited.
B) The Accounts Payable account is debited for the cash paid.
C) The Inventory account is reduced when the discount is taken.
D) The Purchase Discount Lost account is debited when the discount is not taken.
39. BLP Corporation reported wages expense of $224,000, wages payable of $89,400 at the beginning of the year, and wages payable of $71,300 at the end of the year. Cash payments for wages during the year were:
A)$205,900
B)$224,000
C)$242,100
D)$295,300
40. JAFCO, Inc. reported insurance expense of $137,000, prepaid insurance of $8,300 at the beginning of the year, and prepaid insurance of $5,600 at the end of the year. Cash payments for insurance during the year were:
A)$134,300
B)$137,000
C)$139,700
D)$142,600
41. Corinthian Industries reported cost of goods sold of $765,000, beginning and ending inventory of $85,200 and $98,600, respectively, and beginning and ending accounts payable of $54,300 and $62,500, respectively. Cash payments for merchandise inventory during the year were:
A)$743,400
B)$759,800
C)$770,200
D)$786,600
42. Omni Manufacturing reported cost of goods sold of $547,000, beginning and ending inventory of $76,400 and $68,600, respectively, and beginning and ending accounts payable of $39,700 and $27,500, respectively. Cash payments for merchandise inventory during the year were:
A)$527,000
B)$542,600
C)$551,400
D)$567,000
