1. Under the periodic method, the year-end adjusting entry for inventory affects: a. only the income statement. b. only the balance sheet. c. both the income statement and the balance sheet. d. none of the above.

2. Which account balance is missing in this computation of cost of goods sold? Beginning Inventory xx,xxx Purchases x,xxx Goods Available for Sale xx,xxx ?????(xx,xxx) Cost of Goods Sold xx,xxx a. Purchase Returns and Allowances b. Freight c. Ending Inventory d. Sales Returns and Allowances

3. The following account balances appear on a year-end trial balance: Merchandise Inventory, $65,000; Purchases, $250,000; Sales, $600,000; Freight-in, $8,500; Sales Returns and Allowances, $7,000; and Purchase Returns and Allowances, $4,000. Ending inventory is $45,000. What is the cost of goods sold? a. $278,500 b. $274,500 c. $270,000 d. $318,500

4. BendCo, which uses the periodic method, purchases inventory for $2,500 cash. What is the journal entry to book the return of goods for $600 cash? a. Cash 600 Purchase Returns and Allowances 600 b. Cash 600 Sales 600 c. Cash 600 Merchandise Inventory 600 d. Cash 600 Cost of Goods Sold 600

Answer rating: 100% (QA)

1 The correct option is c both the income statement and the balance sheet Under the periodic method ... View the full answer