Question : 101. Herald Company had sales of $135,000, sales discounts of $2,000, : 1225807

101. Herald Company had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200. Herald Company’s net sales equals: 

A. $5,200.

B. $129,800.

C. $133,000.

D. $135,000.

E. $140,200.

102. On October 1, Robinson Company sold merchandise in the amount of $5,800 to Rosser, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robinson uses the perpetual inventory system. The journal entry or entries that Robinson will make on October 1 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

103. On October 1, Whaley Company sold merchandise in the amount of $5,800 to Lee Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Whaley uses the perpetual inventory system. Lee pays the invoice on October 8, and takes the appropriate discount. The journal entry that Whaley makes on October 8 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

104. On October 1, Mutch Company sold merchandise in the amount of $5,800 to Carr Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Mutch uses the perpetual inventory system. On October 4, Carr returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Mutch must make on October 4 is:

A. Choice A

B. Choice B

C. Choice C

D. Choice D

E. Choice E

105. A company records the following journal entry: debit Cash $1,470, debit Sales Discounts $30, and credit Accounts Receivable $1,500. This means that a customer has taken a ___ cash discount for early payment. 

A. 1%

B. 2%

C. 5%

D. 10%

E. 15%

106. All of the following statements regarding inventory shrinkage are true except: 

A. Inventory shrinkage refers to the loss of inventory.

B. Inventory shrinkage is determined by comparing a physical count of inventory with recorded inventory amounts.

C. Inventory shrinkage is recognized by debiting an operating expense.

D. Inventory shrinkage is recognized by debiting Cost of Goods Sold.

E. Inventory shrinkage can be caused by theft or deterioration.

107. Which of the following accounts would be closed with a debit? 

A. Sales Discounts.

B. Sales Returns and Allowances.

C. Cost of Goods Sold.

D. Operating Expenses.

E. Sales.

108. An income statement that includes cost of goods sold as another expense and shows only one subtotal for total expenses is a: 

A. Balanced income statement.

B. Single-step income statement.

C. Multiple-step income statement.

D. Combined income statement.

E. Simplified income statement.

109. Expenses that support the overall operations of a business and include the expenses relating to accounting, human resource management, and financial management are called: 

A. Cost of goods sold.

B. Selling expenses.

C. Purchasing expenses.

D. General and administrative expenses.

E. Nonoperating activities.

110. Benson Company had cash sales of $94,275, credit sales of $83,450, sales returns and allowances of $1,700, and sales discounts of $3,475. Benson’s net sales for this period equal: 

A. $94,275.

B. $172,550.

C. $174,250.

D. $176,025.

E. $177,725.