Question : 151. If title to merchandise purchases passes to the buyer when : 1247107

151. If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are  
A. consigned
B. n/30
C. FOB shipping point
D. FOB destination

152. If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are  
A. n/30
B. FOB shipping point
C. FOB destination
D. consigned

153. If the merchandise costs $5,000, insurance in transit costs $250, tariff costs $75, processing the purchase order by the purchasing department costs $25, and the company receiving dock personnel cost $20, what is the total cost charged to the merchandise? 
A. $5,325
B. $5,370
C. $5,350
D. $5,000

154. Under the perpetual inventory system, all purchases of merchandise are debited to the account entitled  
A. Merchandise Inventory
B. Cost of Merchandise Sold
C. Cost of Merchandise Available for Sale
D. Purchases

155. When the perpetual inventory system is used, the inventory sold is debited to  
A. supplies expense
B. cost of merchandise sold
C. merchandise inventory
D. sales

156. Under a perpetual inventory system  
A. accounting records continuously disclose the amount of inventory
B. increases in inventory resulting from purchases are debited to Purchases
C. there is no need for a year-end physical count
D. the purchase returns and allowances account is credited when goods are returned to vendors

157. The proper journal entry to record the receipt of inventory purchased on account in a perpetual inventory system would be: 
A. Jan 1  Inventory              540.00
               Accounts Payable        540.00
B. Jan 1  Office Supplies     540.00
               Accounts Payable        540.00
C. Jan 1  Purchases               540.00
               Accounts Payable        540.00
D. Jan 1  Purchases               540.00
               Accounts Receivable    540.00

158. Which of the following items should not be included in the cost of ending merchandise inventory? 
A. units on consignment
B. purchased units in transit, shipped FOB destination
C. units on hand in the warehouse
D. both (a) and (c)

159. The Corbit Corp. sold merchandise for cash, $7,200.  The cost of the merchandise sold was $3,950.  The journal entry(s) to record this transaction would be 
A. Cash                                             7,200
      Merchandise Inventory                        7,200

Cost of Merchandise Sold               3,950
       Sales                                                  3,950
B. Cash                                             7,200
      Sales                                                  7,200

Cost of Merchandise Sold              3,950
     Merchandise Inventory                         3,950 
C. Cash                                             7,200
      Sales                                                   7,200

Cost of Merchandise Sold              7,200
     Merchandise Inventory                         7,200 
D. Cash                                             3,950
      Sales                                                  3,950

Cost of Merchandise Sold               3,950
     Merchandise Inventory                         3,950 

160. Inventory shortage is recorded when 
A. merchandise is returned by a buyer.
B. merchandise purchased from a seller is incomplete or short.
C. merchandise is returned to a seller.
D. there is a difference between a physical count of inventory and inventory records.