Question 1

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

Accepted Answer

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

Question 2

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation.  ​

Accepted Answer

The entry increases ...

Question 3

Prepare a single-step income statement from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of the fiscal year.

Accepted Answer

The answer of Prepare a single-step income statement from the...

Question 4

Which of the following accounts carry a normal credit balance?

Accepted Answer

A)   Sales Tax Payable, Cost of Goods Sold, and Sales
B)   Inventory, Delivery Expense, and Sales
C)   Customer Refunds Payable, Estimated Returns Inventory, and Sales
D)   Sales Tax Payable, Customer Refunds Payable, and SaleE) B) and C)
F) All of the above

Question 5

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

Accepted Answer

A)   Inventory
B)   Purchases
C)   Accounts Payable
D)   Cost of Merchandise PurchasedE) C) and D)
F) B) and D)

Question 6

Most retailers record all credit card sales as credit sales.

Accepted Answer

A) True 
 B)False

Question 7

Who is responsible for the freight cost when the terms are FOB destination?

Accepted Answer

A)   the seller
B)   the buyer
C)   the ultimate customer
D)   either the buyer or the sellerE) B) and C)
F) A) and D)

Question 8

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

Accepted Answer

A)   $60,000
B)   $70,000
C)   $75,000
D)   $80,000E) All of the above
F) A) and D)

Question 9

In credit terms of 3/15, n/45, the "3" represents the

Accepted Answer

A)   number of days in the discount period
B)   full amount of the invoice
C)   number of days when the entire amount is due
D)   percent of the cash discountE) None of the above
F) C) and D)

Question 10

Journalize the following transactions assuming a perpetual inventory system:
​

Accepted Answer

The answer of Journalize the following transactions assuming a perpetual...

Question 11

The adjusting entry to account for estimated customer returns and allowances involves a

Accepted Answer

A)   debit to Customer Refunds Payable
B)   credit to Customer Refunds Payable
C)   debit to Estimated Returns Inventor
D)   credit to Estimated Returns InventoryE) A) and B)
F) A) and C)

Question 12

Prepare a balance sheet for Fernandez Company assuming the current portion of the notes payable is $30,000.

Accepted Answer

The answer of Prepare a balance sheet for Fernandez Company...

Question 13

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Accepted Answer

A)   consigned
B)   n/30
C)   FOB shipping point
D)   FOB destinationE) None of the above
F) A) and D)

Question 14

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

Accepted Answer

The answer of Conquest Company uses a perpetual inventory system....

Question 15

Which of the lists below shows accounts that would be closed at the end of the fiscal period?

Accepted Answer

A)   Sales, Accounts Payable, Dividends, and Inventory
B)   Cost of Goods Sold, Supplies, Wages Payable, and Dividends
C)   Retained Earnings, Depreciation Expense, Notes Payable, Store Supplies
D)   Sales, Cost of Goods Sold, Supplies Expense, and Wages ExpenseE) None of the above
F) All of the above

Question 16

Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?

Accepted Answer

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

Exam 5: Accounting for Retail Businesses

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

Correct Answer
verified

Prepare a single-step income statement from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of the fiscal year.

Correct Answer
verified

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation.

Correct Answer
verified
The entry increases ...
View Answer

The adjusting entry to account for estimated customer returns and allowances involves a

Correct Answer
verified

Prepare a balance sheet for Fernandez Company assuming the current portion of the notes payable is $30,000.

Correct Answer
verified

Which of the following accounts carry a normal credit balance?

Correct Answer
verified

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

Correct Answer
verified

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

Correct Answer
verified

Who is responsible for the freight cost when the terms are FOB destination?

Correct Answer
verified

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Correct Answer
verified

Most retailers record all credit card sales as credit sales.

Correct Answer
verified

Which of the lists below shows accounts that would be closed at the end of the fiscal period?

Correct Answer
verified

Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?

Correct Answer
verified

Journalize the following transactions assuming a perpetual inventory system:

Correct Answer
verified

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

Correct Answer
verified

In credit terms of 3/15, n/45, the "3" represents the

Correct Answer
verified

Exam 5: Accounting for Retail Businesses

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

Correct AnswerverifiedShow Answer

Prepare a single-step income statement from the following data for Burt Co., taken from the ledger after adjustments on December 31, the end of the fiscal year.

Correct AnswerverifiedShow Answer

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation. ​

Correct AnswerverifiedThe entry increases ...View AnswerShow Answer

The adjusting entry to account for estimated customer returns and allowances involves a

Correct AnswerverifiedShow Answer

Prepare a balance sheet for Fernandez Company assuming the current portion of the notes payable is $30,000.

Correct AnswerverifiedShow Answer

Which of the following accounts carry a normal credit balance?

Correct AnswerverifiedShow Answer

Assume that the total inventory counted at the end of the year was $75,000. Excluded from the count were purchases of $5,000 in transit under FOB destination terms. What is the cost of inventory reported on the balance sheet?

Correct AnswerverifiedShow Answer

Under the periodic inventory system, the journal entry to record the purchase of inventory will include a debit to

Correct AnswerverifiedShow Answer

Who is responsible for the freight cost when the terms are FOB destination?

Correct AnswerverifiedShow Answer

If title to merchandise purchases passes to the buyer when the goods are delivered to the buyer, the terms are

Correct AnswerverifiedShow Answer

Most retailers record all credit card sales as credit sales.

Correct AnswerverifiedShow Answer

Which of the lists below shows accounts that would be closed at the end of the fiscal period?

Correct AnswerverifiedShow Answer

Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?

Correct AnswerverifiedShow Answer

Journalize the following transactions assuming a perpetual inventory system: ​

Correct AnswerverifiedShow Answer

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

Correct AnswerverifiedShow Answer

In credit terms of 3/15, n/45, the "3" represents the

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Colma Company purchased merchandise on account from Bellville Company, $2,400, terms FOB destination. Analyze the transaction and determine its effect on the accounting equation.

Correct Answer
verified
The entry increases ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Journalize the following transactions assuming a perpetual inventory system:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified