This quiz is incomplete! To play this quiz, please finish editing it.
Delete Quiz
This quiz is incomplete! To play this quiz, please finish editing it.
4 QuestionsShow answers
Question 1
SURVEY
30 seconds
Q. A company using the perpetual inventory system purchased inventory worth $21,000 on account with terms of 3/10, n/30. Defective inventory of $1,000 was returned two days later, and the accounts were appropriately adjusted. If the invoice is paid within 10 days, the amount of the purchase discount that would be available to the company is ________.
answer choices
$600
$630
$660
$620
Question 2
SURVEY
30 seconds
Q. From the following details, calculate net sales revenue. Sales Revenue $400,000 Cost of Goods Sold 300,000 Operating Expenses 75,000 Sales Discounts 20,000 Sales Returns and Allowances 8,000 Interest Revenue 6,000
answer choices
$392,000
$372,000
$359,000
$351,000
Question 3
SURVEY
30 seconds
Q. The Merchandise Inventory account balance is $50,000. An physical count of inventory reveals that actual inventory balance is $42,000. Which of the following would be included in the adjusting entry? (Assume a perpetual inventory system.)
answer choices
a $8,000 credit to Cost of Goods Sold
a $50,000 debit to Cost of Goods Sold
a $8,000 credit to Merchandise Inventory
a $42,000 credit to Merchandise Inventory
Question 4
SURVEY
30 seconds
Q. Expenses that fall outside the regular operations of a business are ________.
answer choices
not shown in the income statement of a merchandiser
treated as current assets and are shown as merchandise inventory
included under the other revenues and expenses section of the income statement