ACCT 701 Module 2 Assessment 2 Review 2018.docx - Module 2...

Module 2 Assessment 2 2018 Review 9/9 100%
Question
1
"Y" Company began the accounting period with $60,000 of merchandise, and net cost of purchases
was $240,000. A physical inventory showed $72,000 of merchandise unsold at the end of the period.
The cost of goods sold of Y Company for the period is:
Select one:
a. $252,000.
b. $228,000.
c. $168,000.
d. $300,000.
e. None of the above.
Question
2
A business purchased merchandise for $12,000 on account; terms are 2/10, n/30. If $2,000 of the
merchandise was returned and the remaining amount due was paid within the discount period, the
purchase discount would be:
Select one:
Question
3
On a sales invoice, "2/10, n/30" means
Select one:

e. If paid within 10 days, take a cash discount of 2%. Otherwise, the full amount is due within 30
days.