1. Which of the following accounts usually has a debitbalance?

	Purchase Discounts
	Sales Tax Payable
	Allowance for Doubtful Accounts
	Freight In

2. Isaac Co. sells merchandise on credit toSonar Co in the amount of $9,600. The invoice is dated onApril 15 with terms of 1/15, net 45. If Sonar Co.chooses not to take the discount, by when should Sonarmake the payment?

	May 30
	May 15
	April 25
	None of the above.

3. Under the periodic inventory system, allpurchases of merchandise are debited to the accountentitled

	Purchases
	Cost of Merchandise Available for Sale
	Accounts Payable

4. The Corbit Corp. sold merchandise on accountfor, $7,200. Corbit Corp. utilizes the periodic inventorysystem. The cost of the merchandise sold was $3,950. The journal entry(s) to record this transaction wouldbe

	AccountsReceivable 7,200 Sales 7,200 Cost of MerchandiseSold 3,950 MerchandiseInventory 3,950
	Cash 7,200 Sales 7,200 Cost of MerchandiseSold 7,200 MerchandiseInventory 7,200
	AccountsReceivable 7,200 Sales 7,200

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