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##### Accounting Homework 1-10

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A company had sales of \$375,000 and its gross profit was \$157,500. Its cost of goods sold equals;\$(217,000).;\$375,000.;\$157,500.;\$217,500.;\$532,500.;A company purchased \$1,800 of merchandise on December 5. On December 7, it returned \$200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals;\$200.;\$1,564.;\$1,568.;\$1,600.;\$1,800.;An account used in the periodic inventory system that is not used in the perpetual inventory system is;Merchandise Inventory;Sales;Sales Returns and Allowances;Accounts Payable;Purchases;Brig Company had \$800,000 in sales, sales discounts of \$12,000, sales returns and allowances of \$18,000, cost of goods sold of \$380,000, and \$275,000 in operating expenses. Gross profit equals;\$770,000.;\$115,000.;\$390,000.;\$402,000.;\$408,000.;Cost of goods sold;Is another term for merchandise sales.;Is the term used for the cost of buying and preparing merchandise for sale.;Is another term for revenue.;Is also called gross margin.;Is a term only used by service firms.;Expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers are;General and administrative expenses.;Cost of goods sold.;Selling expenses.;Purchasing expenses.;Nonoperating activities.;Herald Company had sales of \$135,000, sales discounts of \$2,000, and sales returns of \$3,200. Herald Company's net sales equals;? \$5,200.;? \$129,800.;? \$133,000.;? \$135,000.;? \$140,200.;Merchandise inventory;? Is a long-term asset.;? Is a current asset.;? Includes supplies.;? Is classified with investments on the balance sheet.;? Must be sold within one month.;On October 1, Courtland Company sold merchandise in the amount of \$5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is \$4,000. Courtland uses the periodic inventory system. The journal entry or entries that Courtland will make on October 1 is;? Choice A;? Choice B;? Choice C;? Choice D;? Choice E;On October 1, Courtland Company sold merchandise in the amount of \$5,800 to Carter Company, with credit terms of 2/10, n/30. The cost of the items sold is \$4,000. Courtland uses the periodic inventory system. Carter pays the invoice on October 8, and takes the appropriate discount. The journal entry that Courtland makes on October 8 is;? Choice A;? Choice B;? Choice C;? Choice D;? Choice E;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;? Choice A;? Choice B;? Choice C;? Choice D;? Choice E;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;? Choice A;? Choice B;? Choice C;? Choice D;The amount recorded for merchandise inventory includes all of the following except;? Purchase discounts.;? Returns and allowances.;? Freight costs paid by the buyer.;? Freight costs paid by the seller.;? Trade discounts.;The credit terms 2/10, n/30 are interpreted as;? 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.;? 10% cash discount if the amount is paid within 2 days, or the balance due in 30 days.;? 30% discount if paid within 2 days.;? 30% discount if paid within 10 days.;? 2% discount if paid within 30 days.;The current period's ending inventory is;? The next period's beginning inventory.;? The current period's cost of goods sold.;? The prior period's beginning inventory.;? The current period's net purchases.;? The current period's beginning inventory.

Paper#79840 | Written in 18-Jul-2015

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