Question : 141. Based the following information, what would be recorded as the : 1234067

141. Based on the following information, what would be recorded as the cash payment if the invoice is paid within the discount period?

1.

$5,000 of merchandise inventory was ordered on April 2, 2007

2.

$2,000 of this merchandise was received on April 5, 2007

3.

On April 6, 2007, an invoice dated April 4, 2007, with terms of 2/10, net 30 for $2,150 which included a $150 prepaid freight cost, was received.

4.

On April 10, 2007, $500 of the merchandise was returned to the seller.

 A. $1,470B. $1,520C. $2,150D. $1,620

142. Based on the following information, what would be recorded as net purchases amount after all of the transactions have been recorded?

1.

$5,000 of merchandise inventory was ordered on April 2, 2007

2.

$2,000 of this merchandise was received on April 5, 2007

3.

On April 6, 2007, an invoice dated April 4, 2007, with terms of 2/10, net 30 for $2,150 which included a $150 prepaid freight cost, was received.

4.

On April 10, 2007, $500 of the merchandise was returned to the seller.

 A. $2,000B. $2,150C. $1,620D. $1,470

143. Based on the following information, the entry for April 10, 2007 would include?

1.

$5,000 of merchandise inventory was ordered on April 2, 2007

2.

$2,000 of this merchandise was received on April 5, 2007

3.

On April 6, 2007, an invoice dated April 4, 2007, with terms of 2/10, net 30 for $2,150 which included a $150 prepaid freight cost, was received.

4.

On April 10, 2007, $500 of the merchandise was returned to the seller.

 A. Debit to Merchandise Inventory $500B. Debit to Purchases Returns $500C. Credit to Merchandise Inventory $500D. Credit to Accounts Payable $500

144. Based on the following information, by what date does the invoice need to be paid in order to take the advantage of the discount?

1.

$5,000 of merchandise inventory was ordered on April 2, 2007

2.

$2,000 of this merchandise was received on April 5, 2007

3.

On April 6, 2007, an invoice dated April 4, 2007, with terms of 2/10, net 30 for $2,150 which included a $150 prepaid freight cost, was received.

4.

On April 10, 2007, $500 of the merchandise was returned to the seller.

 A. April 15, 2007B. April 16, 2007C. April 10, 2007D. April 14, 2007

145. Based on the following information, what would be the cash payment if the company decides to payment the invoice on April 30, 2007?

1.

$5,000 of merchandise inventory was ordered on April 2, 2007

2.

$2,000 of this merchandise was received on April 5, 2007

3.

On April 6, 2007, an invoice dated April 4, 2007, with terms of 2/10, net 30 for $2,150 which included a $150 prepaid freight cost, was received.

4.

On April 10, 2007, $500 of the merchandise was returned to the seller.

 A. $1,650B. $1,620C. $2,150D. $2,000

146. Who pays the freight costs when the terms are FOB shipping point? A. the ultimate customerB. the buyerC. the sellerD. either the seller or the buyer

147. Who pays the freight cost when the terms are FOB destination? A. the sellerB. the buyerC. the customerD. either the buyer or the seller

148. A retailer purchases merchandise with a catalog list price of $10,000. The retailer receives a 25% trade discount and credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period? A. $10,000B. $7,500C. $9,800D. $7,350

149. Which of the following accounts, will only be found in the chart of accounts of a merchandising company? A. SalesB. Accounts ReceivableC. Merchandise InventoryD. Accounts Payable

150. Which of the following items would affect the cost of merchandise inventory acquired during the period? A. quantity discountsB. cash discountsC. transportation-inD. all of the above