Question : 126. A company has net sales of $752,000 and cost of : 1257878

 

 

126. A company has net sales of $752,000 and cost of goods sold of $543,000. Its net income is $17,530. The company’s gross margin and operating expenses, respectively,are: A. $209,000 and $191,470B. $191,470 and $209,000C. $525,470 and $227,000D. $227,000 and $525,470E. $734,000 and $191,470

 

127. Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system? A. Merchandise InventoryB. SalesC. Sales Returns and AllowancesD. Accounts PayableE. Purchases

128. When preparing an unadjusted trial balance using a periodic inventory system, the amount shown for Merchandise Inventory is: A. The ending inventory amount.B. The beginning inventory amount.C. Equal to the cost of goods sold.D. Equal to the cost of goods purchased.E. Equal to the gross profit.

 

129. On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. The journal entry or entries that Vander will make on September 12 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

130. On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 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

 

131. On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the inventory system. On September 14, Jepson returns some of the merchandise. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Vander must make on September 14 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

132. On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is: 

 

A.

Cash

5,800

 

 

Accounts receivable…………..

 

5,800

 

B.

Cash…………………….

4,000

 

 

Accounts receivable…………..

 

4,000

 

C. 

Cash

5,194

 

 

Sales discounts…………………

     106

 

 

Accounts receivable…………..

 

5,300

 

D.

Cash

5,684

 

 

Accounts receivable…………..

 

5,684

 

E.

Cash

5,684

 

 

Sales discounts…………………

   116

 

 

Accounts receivable…………..

 

5,800

 

133. Cushman Company, Inc. had $800,000 in net sales, $350,000 in gross profit, and $200,000 in operating expenses. Cost of goods sold equals: A. $150,000.B. $450,000.C. $800,000.D. $350,000.E. $200,000.

 

134. Cushman Company, Inc. had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals: A. $770,000.B. $115,000.C. $390,000.D. $402,000.E. $408,000.

 

135. Cushman Company, Inc. had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals: A. $770,000.B. $402,000.C. $390,000.D. $115,000.E. $408,000.

 

 

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