Unformatted text preview: ACCT 2101 Spring 2008 Quiz Chapter 4 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Goods with an Invoice price of $42,000 were purchased F.O.B. Shipping Point with terms 1/10,n/30. As a convenience to the buyer, the seller paid the shipping charges of $250, for transporting the merchandise to the buyer. The buyer later returned defective merchandise of $2,000 back to the seller, before the settlement of the invoice. If the buyer paid for the merchandise within the discount period, the cost of this purchase was: A. $39,450 B. $39,847.50 C. $39,850 D. $39,200 2. Using a Perpetual Inventory system, the seller’s journal entry to record the return from a customer of merchandise sold on account includes a A. Credit to Sales Returns and Allowances B. Debit to Cost of Goods Sold. C. Debit to Merchandise Inventory D. Debit to Accounts Payable E. Credit to Merchandise Inventory 3. If a company is using a perpetual Inventory system, the balance of its inventory account three quarters of the way through an accounting...
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- Spring '07
- Revenue, Goods Sold, Sales Discounts, sales returns, shipping point