Question :
136.A company purchased $10,000 of merchandise June 15 with terms : 1236902
136.A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:
A.$8,924.
B.$9,700.
C.$10,000.
D.$9,800.
E.$8,724.
137.A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge was $500. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:
A.$9,224.
B.$10,200.
C.$10,500.
D.$10,300.
E.$9,424.
138.A company’s current assets are $23,420, its quick assets are $13,890 and its current liabilities are $12,220. Its acid-test ratio equals:
A.0.88.
B.1.91.
C.1.14.
D..52.
E.1.41.
139.Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio:
A.3.01 and 1.21
B.3.16 and .97
C.3.04 and 1.21
D.1.09 and 4.77
E.3.16 and 1.21
140.A company’s net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals:
A.46.6%.
B.53.4%.
C.28.3%.
D.31.5%.
E.40.5%.
141.All of the following statements related to U.S. GAAP and IFRS are true except:
A.Accounting for basic inventory transactions is the same under the two systems.
B.The closing process for merchandisers is the same under both systems.
C.U.S. GAAP offers little guidance about the presentation order of expenses.
D.Neither system requires separate disclosure of items when their size, nature, or frequency are important.
E.Neither system defines operating income.
142.A company purchases merchandise with a catalog price of $20,000. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?
A.$13,720.
B.$19,600.
C.$6,860.
D.$13,000.
E.$12,740.
143.A company has net sales of $825,000 and cost of goods sold of $547,000. Its net income is $98,500. The company’s gross margin and operating expenses, respectively, are:
A.$209,000 and $191,470
B.$278,000 and $179,500
C.$278,000 and $98,500
D.$179,500 and $98,500
E.$645,500 and $179,500
144.On March 12, Klein Company 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. The journal entry or entries that Klein will make on March 12 is:
A.Sales7,800
Accounts receivable7,800
B.Sales7,800
Accounts receivable7,800
Cost of goods sold4,500
Merchandise Inventory4,500
C.Accounts receivable7,800
Sales7,800
D.Accounts receivable7,800
Sales7,800
Cost of goods sold4,500
Merchandise inventory4,500
E.Accounts receivable4,500
Sales4,500
145.On March 12, Klein Company 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
146.On March 12, Klein Company 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 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.
148.On March 12, Klein Company 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
149.Zenith Company’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 Inventory91,820
