Question : 145.On March 12, Klein Company, Inc. sold merchandise in the : 1258801

 

145.On March 12, Klein Company, Inc. 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

 

Sales Discounts = $7,800 * .02 = $156Cash = $7,800 – $156 = $7,644

 

 

 

146.On March 12, Klein Company, Inc. 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, Inc. 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.

Accounts Receivable = $7,800 – $600 = $7,200Sales Discounts = $7,200 * .02 = $144Cash = $7,200 – $144 = $7,056

 

 

 

148.On March 12, Klein Company, Inc. 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

 

Accounts Receivable = $7,800 – $600 = $7,200Sales Discounts = $7,200 * .02 = $144Cash = $7,200 – $144 = $7,056

 

 

 

149.Zenith Company Inc.’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 Inventory90,450