Question : 11) If the shipping terms FOB shipping point and the : 1212624

11) If the shipping terms are FOB shipping point and the freight bill is $200, the purchaser, using a periodic inventory system would record payment of the freight with a debit to:

A) Inventory and credit to Cash for $200.

B) Freight In and a credit to Cash for $200.

C) Inventory and credit to Purchases Discounts for $200.

D) Purchases Discounts and credit to Inventory for $200.

12) Day Company purchased $3,000 of merchandise on credit, terms 3/15 n/30. The entry to record payment for the merchandise within the discount period under a periodic inventory system would include a:

A) debit to Inventory of $1,940.

B) debit to Accounts Payable of $1,940.

C) credit to Purchase Discounts of $90.

D) credit to Inventory of $90.

13) Mars Company purchased $2,500 of merchandise on account, terms 3/10 n/60. If payment was made within the discount period, the entry to record the payment under a periodic inventory system would include a credit to:

A) Cash of $2,425.

B) Inventory of $2,352.

C) Accounts Payable of $2,400.

D) Cash for $2,400.

14) When the buyer pays the freight costs, the entry to record the payment under a periodic inventory system would include a debit to:

A) Delivery Expense.

B) Purchases Discounts.

C) Inventory.

D) Freight In.

15) When goods are shipped FOB destination and a periodic inventory system is used, the buyer would:

A) debit Freight In for the amount of the transportation charges.

B) debit Delivery Expense for the amount of the transportation charges.

C) make no journal entry for the transportation charges.

D) debit Inventory for the amount of the transportation charges.

16) To update the inventory records for the sale of merchandise on account under a periodic inventory system, the entry would include:

A) a credit to Inventory.

B) a debit to Accounts Payable.

C) no entry as inventory records are not updated at the time of sale.

D) a debit to Cost of Goods Sold.

17) The entries to record a $5,000 cash sale under a periodic inventory system, when the cost of the merchandise is $3,200, include a:

A) debit to Inventory for $5,000.

B) credit to Sales Revenue for $5,000.

C) debit to Cost of Goods Sold for $3,200.

D) debit to Accounts Receivable for $5,000.

18) Under a periodic inventory system, the entry to record the return of inventory sold on account for $250 with a cost of $185 would be recorded by the seller as a:

A) credit to Accounts Receivable for $250.

B) debit to Sales Returns and Allowances for $185.

C) credit to Sales Revenue for $250.

D) credit to Cost of Goods Sold for $185.

19) Under a periodic inventory system, the entry to record the return of inventory sold on account for $360 with a cost of $210 would be recorded by the seller as a:

A) credit to Accounts Receivable for $210.

B) debit to Sales Returns and Allowances for $360.

C) debit to Sales Revenue for $360.

D) debit to Inventory for $210.

20) Under a periodic inventory system, the entries to record a $2,600 sales return of undamaged goods for a sale originally made on account, when the merchandise had a cost of $1,200, include a:

A) debit to Inventory of $1,200.

B) debit to Sales Returns and Allowances of $2,600.

C) credit to Cost of Goods Sold of $2,600.

D) credit to Sales Returns and Allowances of $1,200.