A sales invoice included the following information: merchandise price, $7,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592 added to the invoice. Assuming that a credit for merchandise returned of $1,600 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

a.$6,730

b.$1,600

c.$7,800

d.$8,308

Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $400. Pierce prepaid the $40 shipping charge. Which of the following entries does Pierce make to record this sale?

a.Accounts Receivable-Stanton, debit $40; Sales, credit $40

b.Accounts Receivable-Stanton, debit $392; Sales, credit $392, and Accounts Receivable-Stanton, debit $40; Cash, credit $40

c.Accounts Receivable-Stanton, debit $440; Sales, credit $440

d.Accounts Receivable-Stanton, debit $40; Sales, credit $40, and Transportation Out, debit $400; Cash, credit $400

The Boxwood Company sells blankets for $30 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date	Blankets	Units	Cost
May 3	Purchase	33	$12
10	Sale	13
17	Purchase	20	$14
20	Sale	23
23	Sale	1
30	Purchase	26	$15

Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.

a.$16

b.$240

c.$14

d.$282

The following lots of Commodity Z were available for sale during the year.

Beginning inventory	11 units at $50
First purchase	18 units at $51
Second purchase	21 units at $56
Third purchase	15 units at $62

The firm uses the periodic system, and there are 21 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?

a.$3,574

b.$1,050

c.$3,553

d.$1,266

The Corbit Corp. sold merchandise for $10,000 cash. The cost of the goods sold was $7,590. The journal entries to record this transaction under the perpetual inventory system would be

a.

Cash		10,000
Sales			10,000
Cost of Goods Sold		7,590
Inventory			7,590

b.

Cash		7,590
Sales			7,590
Cost of Goods Sold		7,590
Inventory			7,590

c.

Cash		10,000
Sales			10,000
Cost of Goods Sold		10,000
Inventory			10,000

d.

Cash		10,000
Inventory			10,000
Cost of Goods Sold		7,590
Sales			7,590

The following lots of Commodity Z were available for sale during the year.

Beginning inventory	11 units at $50
First purchase	18 units at $51
Second purchase	21 units at $56
Third purchase	15 units at $62

The firm uses the periodic system, and there are 21 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the FIFO method?

a.$3,574

b.$1,050

c.$3,553

d.$1,266

The following lots of a particular commodity were available for sale during the year

Beginning inventory	12 units at $52
First purchase	15 units at $51
Second purchase	26 units at $28
Third purchase	19 units at $63

The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year rounded to nearest dollar according to the average cost method? Do not round intermediate calculations.

a.$1,134

b.$1,013

c.$1,144

d.$1,281

Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $22,000. What is the amount of sales discount allowable?

a.$224

b.$440

c.$163

d.$216

Merchandise with a sales price of $4,900 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a

a.debit to Customer Refunds Payable for $98

b.debit to Accounts Receivable for $4,900

c.credit to Sales for $4,802

d.debit to Cash for $4,900

The Boxwood Company sells blankets for $39 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.

Date	Blankets	Units	Cost
May 3	Purchase	9	$16
10	Sale	5
17	Purchase	13	$18
20	Sale	5
23	Sale	3
30	Purchase	11	$23

Assuming that the company uses the perpetual inventory system, determine the cost of goods sold for the sale of May 20 using the FIFO inventory cost method.

a.$170

b.$82

c.$154

d.$88

The inventory data for an item for November are:

Nov. 1		Inventory	25 units at $21
4		Sold	9 units
10		Purchased	34 units at $19
17		Sold	24 units
30		Purchased	25 units at $21

Using a perpetual system, what is the cost of the goods sold for November if the company uses LIFO?

a.$981

b.$677

c.$645

d.$1,019

The following lots of Commodity Z were available for sale during the year.

Beginning inventory	7 units at $48
First purchase	17 units at $53
Second purchase	52 units at $57
Third purchase	17 units at $57

The firm uses the periodic system, and there are 22 units of the commodity on hand at the end of the year. What is the ending inventory balance at the end of the year according to the LIFO method?

a.$5,170

b.$1,131

c.$1,056

d.$1,254

Answer rating: 100% (QA)

1 A 6730 Explanation The amount of cash that should be received by the seller is 7800 merchandise price 1600 credit for merchandise returned 6200 Since the invoice is paid within the discount period t... View the full answer