Question 1

Find the best match

- A. B. C. D. E.	Credit sales
- A. B. C. D. E.	Debit Inventory
- A. B. C. D. E.	debit Accounts Receivable
- A. B. C. D. E.	Credit Accounts Payable
- A. B. C. D. E.	debit cash

A.	purchased
B.	sold or made sale
C.	sold on account
D.	purchased on account
E.	made cash sale

0.5 points

Question 2

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

	a.	credit to Sales
	b.	debit to Accounts Payable
	c.	debit to Merchandise Inventory
	d.	credit to Merchandise Inventory

0.5 points

Question 3

Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. What is the amount of sales discount allowable?

	a.	$460
	b.	$500
	c.	$150
	d.	$260

0.5 points

Question 4

When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit

	a.	Accounts Payable
	b.	Purchases Returns and Allowances
	c.	Accounts Receivable
	d.	Merchandise Inventory

0.5 points

Question 5

The entry to record the sale of merchandise on account includes a

	a.	debit to Sales
	b.	credit to Merchandise Inventory
	c.	credit to Accounts Receivable
	d.	debit to Merchandise Inventory

0.5 points

Question 6

Matching

- A. B. C. D.	Purchaser owns goods when shipped
- A. B. C. D.	Purchaser owns goods when received
- A. B. C. D.	Normal balance of sales
- A. B. C. D.	normal balance of merchandise inventory

A.	FOB shipping
B.	FOB destination
C.	credit
D.	debit

0.5 points

Question 7

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

	a.	Cash 10,000 Merchandise Inventory 10,000 ? Cost of Merchandise Sold 7,590 Sales 7,590
	b.	Cash 7,590 Sales 7,590 ? Cost of Merchandise Sold 7,590 Merchandise Inventory 7,590
	c.	Cash 10,000 Sales 10,000 ? Cost of goods Sold 7,590 Merchandise Inventory 7,590
	d.	Cash 10,000 Sales 10,000 ? Cost of Merchandise Sold 10,000 Merchandise Inventory 10,000

0.5 points

Question 8

Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a

	a.	debit to Accounts Receivable for $5000
	b.	debit to Cash for $5,000
	c.	debit to Sales for $4,900
	d.	debit to Merchandise Inventory for $100