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