ACC 502 Week 3 Quiz.docx - Sales revenue of a merchandiser...

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Sales revenue of a merchandiser amounted to $20,000, sales returns and allowances amounted to $2,500, and sales discounts of $700. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include: a debit to Income Summary for $2,500. a debit to Income Summary for $19,300. a credit to Income Summary for $17,500. a credit to Income Summary for $20,000. On November 1, 2015, Wrenns Martch sold merchandise with a cost of $5,000 for $10,000, FOB destination, with payment terms of 3/10, n/40, Wrenns paid transportation costs of $100. Of these, merchandise sold for $3,000 (with a cost of $1,500) was returned on November 6. The company received the payment for the balance amount on November 10, 2015. Calculate the Net sales revenue. $4,790 $7,000 $6,790 $7,790 Sandra Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in, first-out (LIFO)
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method. The current replacement cost is $10 per unit. The selling price charged by Sandra Company for each finished product is $15. In order to record the
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  • Winter '13
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  • Revenue, Generally Accepted Accounting Principles, Goods Sold, Sales revenue of a merchandiser

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