Question : 101. Using the following information, what the amount of net sales? Purchases $32,000 : 1239756

 

 

101. Using the following information, what is the amount of net sales? 

Purchases

$32,000

 

Purchases discounts

$960

Merchandise inventorySeptember 1

5,700

 

Merchandise inventorySeptember 30

6,370

Sales returns andallowances

910

 

Sales

63,000

Purchases returns andallowances

1,200

 

Freight In

1,040

 

 

 

 

 

 A. $28,970B. $63,130C. $63,000D. $62,090

 

102. Using the following information, what is the amount of merchandise available for sale? 

Purchases

$32,000

 

Purchases discounts

$960

Merchandise inventorySeptember 1

5,700

 

Merchandise inventorySeptember 30

6,370

Sales returns andallowances

910

 

Sales

63,000

Purchases returns andallowances

1,200

 

Freight In

1,040

 

 

 

 

 

 A. $35,540B. $36,580C. $37,700D. $34,500

 

103. Where are selling and administrative expenses found on the multiple-step income statement? A. before gross profitB. after sales and before gross profitC. after net income before expensesD. after gross profit

 

104. Dorman Co. sold merchandise to Smith Co. on account, $23,500, terms 2/15, net 45.  The cost of the merchandise sold is $16,000.  Dorman Co. issued a credit memo for $1,750 for merchandise returned that originally cost $1,400.  The Smith Co. paid the invoice within the discount period.  What is amount of net sales from the above transactions? A. $23,030B. $21,750C. $21,315D. $13,808

 

105. Using a perpetual inventory system, the entry to record the sale of merchandise on account includes a  A. debit to SalesB. debit to Merchandise InventoryC. credit to Merchandise InventoryD. credit to Accounts Receivable

 

106. Which of the following accounts has a normal debit balance? A. Accounts PayableB. Sales Returns and AllowancesC. SalesD. Interest Revenue

 

107. Merchandise is ordered on December 1; the merchandise is shipped by the seller and the invoice is prepared, dated, and mailed by the seller on December 3; the merchandise is received by the buyer on December 8; the entry is made in the buyer’s accounts on December 10.  The credit period begins with what date? A. December 1B. December 3C. December 8D. December 10

 

108. Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a  A. credit to Sales Returns and AllowancesB. debit to Merchandise InventoryC. credit to Merchandise InventoryD. debit to Cost of Merchandise Sold

 

109. If merchandise sold on account is returned to the seller, the seller may inform the customer of the details by issuing a  A. sales invoiceB. purchase invoiceC. credit memoD. debit memo

 

110. The arrangements between buyer and seller as to when payments for merchandise are to be made are called  A. credit termsB. net cashC. cash on demandD. gross cash

 

 

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