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111 merchandise subject to terms 1 10 n 30 fob shipping point is sold on account to 4297073

 

111. Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $15,000. The seller paid transportation costs of $1,000 and issued a credit memorandum for $5,000 prior to payment. What is the amount of the cash discount allowable? 
A. $160
B. $150
C. $140
D. $100

112. Which of the following accounts has a normal credit balance? 
A. Sales Returns and Allowances
B. Sales
C. Merchandise Inventory
D. Delivery Expense

113. The entry to record the return of merchandise from a customer would include a  
A. debit to Sales
B. credit to Sales
C. debit to Sales Returns and Allowances
D. credit to Sales returns and Allowances

114. Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a  
A. debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
B. debit to Cash and a credit to Sales
C. debit to Cash, credit to Credit Card Expense, and a credit to Sales
D. debit to Sales, debit to Credit Card Expense, and a credit to Cash

115. Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as  
A. sales on account
B. sales returns
C. cash sales
D. sales when the credit card company remits the cash

116. When a buyer returns merchandise purchased for cash, the buyer may record the transaction using the following entry  
A. debit Merchandise Inventory; credit Cash
B. debit Cash; credit Merchandise Inventory
C. debit Cash; credit Sales Returns and Allowances
D. debit Sales Returns and Allowances; credit Cash

117. When merchandise is returned under the perpetual inventory system, the buyer would credit  
A. Merchandise Inventory
B. Purchases Returns and Allowances
C. Accounts Payable
D. depending on the inventory system used.

118. When purchases of merchandise are made for cash, the transaction may be recorded with the following entry  
A. debit Cash; credit Merchandise Inventory
B. debit Merchandise Inventory; credit Cash
C. debit Merchandise Inventory; credit Cash Discounts
D. debit Merchandise Inventory; credit Purchases

119. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a  
A. debit to Sales
B. debit to Merchandise Inventory
C. credit to Merchandise Inventory
D. credit to Sales

120. Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a  
A. debit to Cost of Merchandise Sold
B. credit to Accounts Payable
C. credit to Merchandise Inventory
D. credit to Sales

 

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