Question :
106.Sales less sales discounts less sales returns and allowances equals:
A.Net : 1258797
106.Sales less sales discounts less sales returns and allowances equals:
A.Net purchases.
B.Cost of goods sold.
C.Net sales.
D.Gross profit.
E.Net income.
107.Garza Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Garza Company’s net sales equals:
A.$5,200.
B.$129,800.
C.$133,000.
D.$135,000.
E.$140,200.
Net Sales = $135,000 – $2,000 – $3,200 = $129,800
108.On May 1, Shilling Company, Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will make on May 1 is:
A.Sales5,800
Accounts receivable5,800
B.Sales5,800
Accounts receivable5,800
Cost of goods sold4,000
Merchandise Inventory4,000
C.Accounts receivable5,800
Sales5,800
D.Accounts receivable5,800
Sales5,800
Cost of goods sold4,000
Merchandise inventory4,000
E.Accounts receivable4,000
Sales4,000
109.On May 1, Anders Company, Inc. purchased merchandise in the amount of $5,800 from Shilling, with credit terms of 2/10, n/30. Anders uses the perpetual inventory system. The journal entry or entries that Anders will make on May 1 is:
A.Sales5,800
Accounts receivable5,800
B.Merchandise Inventory5,800
Accounts payable5,800
C.Accounts payable5,800
Sales5,800
D.Merchandise inventory5,800
Cash5,800
E.Purchases5,800
Accounts Payable5,800
110.On February 3, Smart Company, Inc. sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
A.Cash5,800
Accounts receivable5,800
B.Cash4,000
Accounts receivable4,000
C.Cash3,920
Sales discounts80
Accounts receivable4,000
D.Cash5,684
Accounts receivable5,684
E.Cash5,684
Sales discounts116
Accounts receivable5,800
Sales Discounts = $5,800 * .02 = $116Cash = $5,800 – $116 = $5,684
111.On July 1, Ferguson Company, Inc. sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 is:
A.Sales returns and allowances500
Accounts receivable500
Merchandise inventory350
Cost of goods sold350
B.Sales returns and allowances500
Accounts receivable500
C.Accounts receivable500
Sales returns and allowances500
D.Accounts receivable500
Sales returns and allowances500
Cost of goods sold350
Merchandise inventory350
E.Sales returns and allowances350
Accounts receivable350
112.Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:
A.$8,167.50.
B.$9,652.50.
C.$9,750.00.
D.$8,250.00.
E.$8,152.50.
Cash Paid = ($9,750 – $1,500) * .99 = $8,167.50
113.Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The amount of the cash paid on August 26 equals:
A.$8,167.50
B.$9,652.50.
C.$9,750.00.
D.$8,250.00.
E.$8,152.50.
Cash Paid = ($9,750 – $1,500) = $8,250No discount may be taken because the payment was not within 10 days of the purchase.
114.Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is:
A.Debit Merchandise Inventory $9,750; credit Cash $9,750.
B.Debit Accounts Payable $9,750; credit Merchandise Inventory $9,750.
C.Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250.
D.Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750.
E.Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.
115.Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The correct journal entry to record the merchandise return on August 11 is:
A.Debit Accounts Payable $1,500; credit Cash $1,500.
B.Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500.
C.Debit Merchandise Inventory $1,500; credit Sales Returns $1,500.
D.Debit Merchandise Inventory $1,500; credit Cash $1,500.
E.Debit Accounts Payable $1,500; credit Purchase Returns $1,500.
