Question 1

The current period's ending inventory is:

Accepted Answer

A)  The next period's beginning inventory.
B)  The current period's cost of goods sold.
C)  The prior period's beginning inventory.
D)  The current period's net purchases.
E)  The current period's beginning inventory.F) A) and D)
G) A) and C)

Question 2

The year-end adjusted trial balance of Gordon Produce for the current year,is shown below:  Prepare closing entries at December 31 for the current year.

Accepted Answer

The answer of The year-end adjusted trial balance of Gordon...

Question 3

Prepare journal entries to record the following merchandising transactions of Margin Company,which applies the perpetual inventory system.Margin Company offers all of its credit customers credit terms of 2/10,n/30.

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 4

Sales returns:

Accepted Answer

A)  Refer to merchandise that customers return to the seller after the sale.
B)  Refer to reductions in the selling price of merchandise sold to customers.
C)  Represent cash discounts.
D)  Represent trade discounts.
E)  Are not recorded under the perpetual inventory system until the end of each accounting period.F) A) and C)
G) A) and B)

Question 5

The following statements are true regarding the operating cycle of a merchandising company except:

Accepted Answer

A)  The operating cycle begins with the purchase of merchandise.
B)  The operating cycle is shortened by credit sales.
C)  The operating cycle ends with the collection of cash from the sale of merchandise.
D)  The operating cycle can vary in length among different merchandising companies.
E)  The operating cycle sometimes involves accounts receivable.F) A) and E)
G) A) and D)

Question 6

A company reported the following information for the month of July:  Required:
Calculate this company's gross profit.

Accepted Answer

The answer of A company reported the following information for...

Question 7

Beginning inventory plus the net cost of purchases is the _____________________.

Accepted Answer

merchandis...

Question 8

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 26,it paid the full amount due.The correct journal entry to record the merchandise return on August 11 is:

Accepted Answer

A)  Debit Accounts Payable $1,500;credit Cash $1,500.
B)  Debit Accounts Payable $1,500;credit Merchandise Inventory $1,500.
C)  Debit Merchandise Inventory $1,500;credit Sales Returns $1,500.
D)  Debit Merchandise Inventory $1,500;credit Cash $1,500.
E)  Debit Accounts Payable $1,500;credit Purchase Returns $1,500.F) A) and D)
G) A) and E)

Question 9

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

Accepted Answer

A)  Reflects an increase in amount due from a customer.
B)  Recognizes that a customer returned merchandise and/or received an allowance.
C)  Requires a debit memorandum to recognize the customer's return.
D)  Is recorded when a customer takes a discount.
E)  Reflects a decrease in amount due to a supplier.F) None of the above
G) B) and C)

Question 10

On July 1,Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Ferguson uses the perpetual inventory system.On July 5,Tracey 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 Ferguson must make on July 5 is:

Accepted Answer

A)   
B)   
C)   
D)   E) A) and B)
F) C) and D) A

Question 11

Quick assets are defined as:

Accepted Answer

A)  Cash,short-term investments,and inventory.
B)  Cash,short-term investments,and current receivables.
C)  Cash,inventory,and current receivables.
D)  Cash,noncurrent receivables,and prepaid expenses.
E)  Accounts receivable,inventory,and prepaid expenses.F) A) and B)
G) All of the above

Question 12

____________________ can benefit a seller by decreasing the delay in receiving cash and reducing future collection efforts.

Accepted Answer

The answer of ____________________ can benefit a seller by decreasing...

Question 13

A company that uses the perpetual inventory system purchased $8,500 of merchandise on March 25 with credit terms of 2/10,n/30.The invoice was paid in full on April 4.Prepare the journal entries to record the transactions on March 25 and April 4.

Accepted Answer

The answer of A company that uses the perpetual inventory...

Question 14

Craig's Snowboards uses the perpetual inventory system and had the following sales transactions during June:  Prepare the journal entries that Craig's Snowboards must make to record these transactions.

Accepted Answer

The answer of Craig's Snowboards uses the perpetual inventory system...

Question 15

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Accepted Answer

The answer of A ______________________ income statement includes cost of...

Question 16

Cushman Company had $800,000 in net sales,$350,000 in gross profit,and $200,000 in operating expenses.Cost of goods sold equals:

Accepted Answer

A)  $150,000.
B)  $450,000.
C)  $800,000.
D)  $350,000.
E)  $200,000.F) C) and D)
G) B) and C) B

Question 17

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 what percentage cash discount for early payment?

Accepted Answer

A)  1%
B)  2%
C)  5%
D)  10%
E)  15%F) A) and B)
G) C) and D)

Question 18

Fragment Company is a wholesaler that sells merchandise in large quantities.Its catalog indicates a list price of $300 on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more.The cost of shipping the merchandise is $7 per unit under terms FOB shipping point.If a customer purchases 100 units of this product,what is the amount of sales revenue that Fragment will record from this sale?

Accepted Answer

A)  $18,000
B)  $30,000
C)  $18,700
D)  $29,300
E)  $30,700F) A) and B)
G) C) and D)

Question 19

Tahoe Ski Company uses the perpetual inventory system and had the following transactions during January:
January 6: Purchased $4,000 of inventory.The seller's credit terms are 2/10,n/30.
January 8: Returned $200 worth of defective units and received full credit.
January 15: Paid the amount due,less the returned items.
Prepare journal entries to record each of the preceding transactions.

Accepted Answer

The answer of Tahoe Ski Company uses the perpetual inventory...

Question 20

Expenses to promote sales by displaying and advertising merchandise,make sales,and deliver goods to customers are known as:

Accepted Answer

A)  General and administrative expenses.
B)  Cost of goods sold.
C)  Selling expenses.
D)  Purchasing expenses.
E)  Non-operating activities.F) A) and B)
G) A) and D)

Exam 5: Accounting for Merchandising Operations

The current period's ending inventory is:

Correct Answer
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The year-end adjusted trial balance of Gordon Produce for the current year,is shown below: Prepare closing entries at December 31 for the current year.

Correct Answer
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Prepare journal entries to record the following merchandising transactions of Margin Company,which applies the perpetual inventory system.Margin Company offers all of its credit customers credit terms of 2/10,n/30.

Correct Answer
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Sales returns:

Correct Answer
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The following statements are true regarding the operating cycle of a merchandising company except:

Correct Answer
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A company reported the following information for the month of July: Required: Calculate this company's gross profit.

Correct Answer
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Beginning inventory plus the net cost of purchases is the _____________________.

Correct Answer
verified
merchandis...
View Answer

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 26,it paid the full amount due.The correct journal entry to record the merchandise return on August 11 is:

Correct Answer
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A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

Correct Answer
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Correct Answer
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A

Quick assets are defined as:

Correct Answer
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____________________ can benefit a seller by decreasing the delay in receiving cash and reducing future collection efforts.

Correct Answer
verified

A company that uses the perpetual inventory system purchased $8,500 of merchandise on March 25 with credit terms of 2/10,n/30.The invoice was paid in full on April 4.Prepare the journal entries to record the transactions on March 25 and April 4.

Correct Answer
verified
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Craig's Snowboards uses the perpetual inventory system and had the following sales transactions during June: Prepare the journal entries that Craig's Snowboards must make to record these transactions.

Correct Answer
verified

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Correct Answer
verified

Cushman Company had $800,000 in net sales,$350,000 in gross profit,and $200,000 in operating expenses.Cost of goods sold equals:

Correct Answer
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B

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 what percentage cash discount for early payment?

Correct Answer
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Expenses to promote sales by displaying and advertising merchandise,make sales,and deliver goods to customers are known as:

Correct Answer
verified

Exam 5: Accounting for Merchandising Operations

The current period's ending inventory is:

Correct AnswerverifiedShow Answer

The year-end adjusted trial balance of Gordon Produce for the current year,is shown below: Prepare closing entries at December 31 for the current year.

Correct AnswerverifiedShow Answer

Prepare journal entries to record the following merchandising transactions of Margin Company,which applies the perpetual inventory system.Margin Company offers all of its credit customers credit terms of 2/10,n/30.

Correct AnswerverifiedShow Answer

Sales returns:

Correct AnswerverifiedShow Answer

The following statements are true regarding the operating cycle of a merchandising company except:

Correct AnswerverifiedShow Answer

A company reported the following information for the month of July: Required: Calculate this company's gross profit.

Correct AnswerverifiedShow Answer

Beginning inventory plus the net cost of purchases is the _____________________.

Correct Answerverifiedmerchandis...View AnswerShow Answer

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 26,it paid the full amount due.The correct journal entry to record the merchandise return on August 11 is:

Correct AnswerverifiedShow Answer

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

Quick assets are defined as:

Correct AnswerverifiedShow Answer

____________________ can benefit a seller by decreasing the delay in receiving cash and reducing future collection efforts.

Correct AnswerverifiedShow Answer

A company that uses the perpetual inventory system purchased $8,500 of merchandise on March 25 with credit terms of 2/10,n/30.The invoice was paid in full on April 4.Prepare the journal entries to record the transactions on March 25 and April 4.

Correct Answerverified11eac048_52be_1ad0_9623_a7b5421b5b54_TB2412_00

Craig's Snowboards uses the perpetual inventory system and had the following sales transactions during June: Prepare the journal entries that Craig's Snowboards must make to record these transactions.

Correct AnswerverifiedShow Answer

A ______________________ income statement includes cost of goods sold as another expense and shows only one subtotal for total expenses.

Correct AnswerverifiedShow Answer

Cushman Company had $800,000 in net sales,$350,000 in gross profit,and $200,000 in operating expenses.Cost of goods sold equals:

Correct AnswerverifiedB

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 what percentage cash discount for early payment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Expenses to promote sales by displaying and advertising merchandise,make sales,and deliver goods to customers are known as:

Correct AnswerverifiedShow Answer

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merchandis...
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A

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11eac048_52be_1ad0_9623_a7b5421b5b54_TB2412_00

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B

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