Question : 21) Under a periodic inventory system, the entries to record : 1212625

21) Under a periodic inventory system, the entries to record a $3,400 sales return for undamaged goods on an original cash sale when the merchandise had a cost of $1,500 include a debit to:

A) Accounts Receivable of $3,400.

B) Cost of Goods Sold of $1,500.

C) Sales Returns and Allowances of $3,400.

D) Inventory of $1,500.

 

22) In a periodic inventory system, the entry to record the purchase of merchandise on account would include a:

A) debit to Accounts Payable.

B) debit to Inventory.

C) credit to Cash.

D) debit to Purchases.

 

23) In a periodic inventory system, when a company returns merchandise previously purchased on account, the entry to record the return would include a:

A) debit to Inventory.

B) credit to Purchase Returns and Allowances.

C) debit to Sales Returns and Allowances.

D) credit to Accounts Payable.

24) In a periodic inventory system, the entry to record the taking of a cash discount for the purchase of merchandise would include a:

A) credit to Purchase Discounts

B) credit to Inventory

C) debit to Purchase Discounts

D) credit to Purchase Returns and Allowances.

 

25) In a periodic inventory system, the entry to record the payment of shipping costs by the company buying the merchandise when the terms are FOB shipping point would include a:

A) debit to Freight In.

B) debit to Delivery Expense.

C) credit to Cost of Goods Sold.

D) credit to Freight Out.

 

26) In a periodic inventory system, the entry to record the sale of $2,000 of merchandise on account with a cost of $1,400 would include a:

A) credit to Accounts Receivable for $1,400.

B) debit to Accounts Receivable for $2,000.

C) debit to Cost of Goods Sold for $2,000.

D) credit to Inventory for $1,400.

27) Avery Supplies uses a periodic inventory system. Avery purchased $10,000 of inventory on account. The terms were 3/10, n/30. The purchase was made on February 1. Avery paid the supplier on February 9.  Which of the following journal entries properly records this payment transaction?

A)

Accounts Payable

9,700

 

    Cash

 

9,700

 

B)

Accounts Payable

9,700

 

Purchase Discounts

300

 

    Purchases

 

10,000

 

C)

Accounts Payable

10,000

 

    Cash

 

9,700

    Purchase Discounts

 

300

 

D)

Accounts Payable

10,000

 

    Cash

 

10,000

 

28) Avery Supplies uses a periodic inventory system. Avery purchased $10,000 of inventory on account. The terms were 3/10, n/30. The purchase was made on February 1. On February 2, Avery returned $400 of damaged goods to the supplier and was granted an allowance.  How should Avery properly record the allowance?

A)

Accounts Payable

400

 

    Purchase Returns and Allowances

 

400

 

B)

Accounts Payable

9,600

 

    Purchase Discounts

400

 

    Purchases

 

10,000

 

C)

Accounts Payable

10,000

 

    Cash

 

9,600

    Purchase Returns and Allowances

 

400

 

D)

Accounts Payable

400

 

    Cash

 

400

 

 

 

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